Ionic Rare Earths has agreed to a joint venture with Missouri-based US Strategic Metals (USSM) to build a major rare earth magnet recycling facility in the United States.
Signed via its wholly owned subsidiary Ionic Rare Earths USA, the 50-50 joint venture plans to construct an integrated recycling hub at USSM’s fully permitted, 1,800-acre site near Fredericktown, Missouri.
The deal replaces and advances a previous memorandum of understanding executed between the parties in late 2025.
The initial rollout involves a US$100 million (AU$148 million) development plan, underpinned by US$95 million in funding from USSM and a joint US$5 million equity contribution split equally between both partners.
The facility will process recycled neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) permanent magnets and magnet scrap, while exploring recycling capabilities for other heavy rare earth elements.
Under the agreement, IonicRE’s Belfast-based technology subsidiary, Ionic Technologies, will contribute a non-exclusive licence for its proprietary hydrometallurgical recycling technology.
Ionic USA will chair the venture’s Technical Operations Committee, taking primary responsibility for operational matters, process flowsheet decisions, and feedstock procurement.
IonicRE Managing Director Tim Harrison pointed out the value of establishing a footprint in North America.
“The proposed JV will seek to provide IonicRE with a practical and capital-efficient method of building rare earth magnet recycling capacity in the United States, the world’s biggest economy,” Harrison said.
“Magnet recycling is a fast and low-cost pathway to developing a secure, sovereign and sustainable rare earths supply chain.”
Stacy W. Hastie, CEO of USSM, added that IonicRe has proven its capability with its rare earth magnet recycling technology.
The partnership aligns with the US-Australia Framework for Securing of Supply in Critical Minerals and Rare Earths, designed to establish resilient supply chains for defence, renewable energy, and advanced manufacturing.
Both companies are now progressing definitive binding agreements, targeting final execution by the end of 2026.