Ionic Rare Earths Ltd. has launched a review of its shovel-ready Makuutu heavy rare earths project in Uganda, responding to surging inbound demand from Western nations for new sources of medium and heavy rare earths supply.
The company, acting through its 60 per cent owned subsidiary Rwenzori rare metals, will evaluate a range of strategic, structural, and funding alternatives for the asset.
Options under consideration include introducing strategic or government-backed partners, new investment structures, or dual listings in alternative international jurisdictions.
The review comes as Western powers accelerate efforts to reduce reliance on Chinese processing, following Beijing’s rare earth export licence restrictions and anticipated further controls in late 2026.
Western urgency is further heightened by a US directive taking effect in January 2027 that prohibits Chinese-origin rare earth magnets across American defence supply chains.
IonicRE Managing Director Tim Harrison said Makuutu’s high concentration of heavy and magnet rare earths, accounting for 45 per cent of its product basket, makes it a crucial asset for Western manufacturing and defence industries.
“Since being added to FORGE, there has been growing interest in Makuutu as currently one of the most advanced Ionic Adsorption Clay projects globally with product not committed to China,” Harrison said.
“As our recycling and refining operations advance and become the core focus of the business, and following discussions with various potential project partners, including in the United States, it is appropriate that we assess the optimal structure to maximise Makuutu’s value for IonicRE shareholders and position the asset within a broader global rare earths ecosystem.”
IonicRE Executive Chairman Brett Lynch noted that intense engagement with US stakeholders across Washington and Detroit has highlighted Makuutu’s strategic positioning.
Located 120 kilometres east of Kampala, Makuutu spans nine licences across 300 square kilometres.
It represents one of the largest advanced ionic adsorption clay deposits outside China, containing heavy rare earths essential for electric vehicles, wind turbines, and defence systems.
While the company evaluates options for Makuutu, IonicRE maintains its primary focus on developing a broader industrial business centred on magnet recycling operations in the United Kingdom, Brazil, and the United States.
