Australian company Ionic Rare Earths (IonicRE) has inked a pivotal deal with Missouri-based US Strategic Metals (USSM) to build America’s first commercial-scale, vertically integrated rare earth production facility powered entirely by recycling permanent magnets. The partnership will leverage IonicRE’s patented recycling technology at USSM’s fully-permitted 1,800-acre site in Missouri, aiming to produce critical magnet metals like neodymium, praseodymium, and dysprosium outside of China’s dominant supply chain.
The heart of this venture is moving magnet recycling from lab-scale demonstrations to commercial reality in the United States. IonicRE will deploy the technology from its Belfast-based subsidiary, Ionic Technologies, specifically designed to recover valuable materials from end-of-life neodymium iron boron (NdFeB) and samarium cobalt (SmCo) magnets. The planned Missouri facility is projected to be more than just a recycling plant; it’s designed as a full-cycle operation that will output high-purity, separated rare earth oxides (REOs), ready for new magnet manufacturing, according to a joint announcement from the companies.
“For the US, magnet recycling is the fastest and lowest-cost pathway to developing an ex-China rare earth supply chain,” stated Tim Harrison, Managing Director of IonicRE. He emphasized the strategic nature of the move, adding, “We now look to replicate the capability we have demonstrated in the UK now in the US to provide a key strategic supply of magnet and heavy rare earths into the US supply chain.” This transatlantic technology transfer is a direct application of the collaborative frameworks being established between Western allies.
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The output list reads like a who’s who of critical materials for modern tech and defense. Beyond the key magnet metals neodymium (Nd) and praseodymium (Pr), the facility is slated to recover vital heavy rare earths, including dysprosium (Dy), terbium (Tb), and samarium (Sm), reported MINING.com. These elements are essential for high-performance motors in electric vehicles, wind turbines, and precision-guided military systems, making their domestic sourcing a top national security priority.
The initial phase will focus on turning scrap magnets into pure oxides, but the collaboration’s scope has room to grow. The companies announced they will also evaluate recycling other heavy rare earth streams and may eventually expand to process strategically sourced mixed rare earth carbonate (MREC). This potential expansion could create a dual-feedstock model, blending recycled material with primary feed, to further bolster and stabilize the supply chain.
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This bilateral partnership is more than a simple business deal; it’s a tangible step forward for a formal government agreement. The collaboration actively supports the United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, which was signed in October 2025. The framework’s goal is to build a secure, allied supply chain, and this project puts that policy directly into industrial practice on American soil.
The choice of location is strategic. US Strategic Metals’ massive, fully permitted site in Missouri provides a ready-made home for the operation, significantly reducing the regulatory timeline to break ground. “Partnering with a US entity that already has a substantial, permitted land package accelerates our path to production,” a source familiar with the deal noted. It transforms a brownfield site into a hub for circular, sustainable critical mineral production.
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Why does this magnet recycling push matter so much? Currently, the West possesses virtually no large-scale capacity to transform old hard drives, EVs, and industrial motors back into the pristine materials needed for new ones. Creating this circular loop de-risks supply from geopolitical disruptions, reduces environmental impact compared to traditional mining, and aligns with both national security and clean energy goals. By turning scrap into strategic stock, IonicRE and US Strategic Metals aren’t just mining waste—they’re forging a new, resilient link in the foundation of modern manufacturing.
