'Northern Ireland’s economy has great strengths': Government-backed initiative led by Belfast facility aims to cut reliance on China and drive EV growth

Ionic Rare Earths Limited (ASX: IXR), through its wholly owned subsidiary Ionic Technologies, welcomed a high-profile visit from the Rt Hon Sarah Jones MPto its Belfast demonstration plant this week.

Minister of State at the Department for Energy Security and Net Zero and the Department for Business and Trade, the visit highlighted the UK Government’s growing commitment to strengthening domestic supply chains for critical minerals. It comes in the wake of a July announcement confirming £11 million in government support for Ionic Technologies’ CirculaREEconomy project—a groundbreaking initiative to establish a circular, UK-focused supply chain for rare earth permanent magnets.

These magnets are essential components in decarbonisation technologies, particularly electric vehicle (EV) motors, and are currently dominated by Chinese production. The CirculaREEconomy project, led by Belfast’s Ionic Technologies, is set to significantly reduce the UK's reliance on imported rare earths by pioneering local recycling and processing solutions.

Tim Harrison, managing director of Ionic Rare Earths Limited, welcoming the UK Government’s support, said: “We are delighted that the UK government has once again backed Ionic Technologies, through its support for the CirculaREEconomy project, which we are leading.

"Multiple manufacturers are participating in the collaboration, which demonstrates just how significant the need for reliable supply chains for Rare Earths and magnet making is, especially in the UK.

"We are excited to work with similarly purpose-driven and innovative partners to deliver this pioneering supply chain collaboration.

“Collectively, we all need to act quickly to diversify supply chains. We will continue to work with the UK Government and supply chain stakeholders to realise a future in which the UK is a leader in rare earth supply chains, built on the strong capability that already exists here, in addition to the crucial commercial capacity that Ionic Technologies plans to build in Belfast.”

The first-of-its-kind project brings together the Northern Ireland business with Ford UK, Bentley Motors, Wrightbus, European Metals Recyclers, Less Common Metals and British Geological Survey, as well as magnet makers in Germany, GKN and Vacuumschmelze. Ionic Technologies will deploy its patented recycling and separation processes, originating from Queen’s University Belfast, to produce high-purity rare earths that can be used to make new high specification magnets for use in e-motors, with enhanced quality and performance.

Sarah Jones MP praised the project’s ambition: “From defence and cyber to the creative industries Northern Ireland’s economy has great strengths, which is why I’m in Belfast speaking to businesses about how our modern Industrial Strategy can help them grow and create well-paid jobs for local people.”

Rik Adams, innovation delivery director at the Advanced Propulsion Centre UK, also welcomed the initiative: “Backed with DRIVE35 funding, the Advanced Propulsion Centre is proud to be supporting Ionic in their Collaborate research and development project at such an exciting time in their journey. Creating a sustainable UK supply chain for critical materials is essential in the transition to zero emissions in the automotive industry and this project is a hugely promising step towards that. I am sure the visiting Minister will be encouraged by the investment by both the project consortium and Department for Business and Trade into this vital technological advancement.”

Following the Advanced Manufacturing Sector Plan and the launch of DRIVE35, the Department for Business and Trade announced Ionic Technologies’ success as part of funding for the development of innovative zero-emission vehicle technologies in the UK.

The project will incorporate industrial validation of the UK supply chain capacity and potential, and represents a significant milestone in the commercialisation of the business, further expanding the technical capability and establishing Belfast as a key location in global supply chains for rare earths.

Rare earths and the technologies that process them are dominated by China, but markets and regulation are driving increased investor interest in developing production and processing in Europe.

Ionic Technologies has committed significant investment in the development of the technology in Belfast, via its parent company, Ionic Rare Earths Limited. The company now aims to commercialise the technology to produce 400 tonnes of separated rare earths per year with a revolutionary facility in Belfast Harbour, which would position the UK as a key player in global critical minerals supply chains, by capitalising on the potential for recycling and circularity.

The business is seeking to progress further UK government support to realise its ambitions in rare earth technology and provide security to key UK industries that rely on rare earths, often in the form of permanent magnets. Rare earths are considered highly critical in the UK due to geopolitical risk associated with their supply, as well as economic vulnerability should supply become unavailable.

Recent export controls by China have highlighted the UK and Western exposure to magnet supply chains. Circularity and, in particular, Ionic Technologies’ process, could be integral to ensuring security of supply.