Ionic Rare Earths, AML partner up to support US permanent magnet supply chain

Ionic Rare Earths (ASX: IXR) has signed binding sales agreements with Advanced Magnet Lab (AML) to supply rare earth oxides (REOs), specifically neodymium-praseodymium oxide and dysprosium oxide used in high-performance magnets.

In addition, both companies have signed a memorandum of understanding (MOU) to collaborate on both the supply of magnet rare earth oxides (REOs) and the recycling of swarf and pre-consumer waste.

Australian-based IonicRE said the news is a step forward in the company’s strategy to establish secure, sovereign and sustainable rare earth supply chains across the US and Europe, while expanding its global refining and magnet recycling footprint.

Florida-based AML was recently awarded a $2 million US Defense Logistics Agency (DLA) contract for domestically produced high-grade sintered NdFeB (neodymium-iron-boron) magnets. The sales agreements with IonicRE are expected to fulfill the contract.

Under the MOU, IonicRE will provide critical REO feedstock to support AML’s PM-Wire manufacturing platform, which is designed to enable scalable, traceable and high-performance permanent magnet production in the United States. AML’s DLA-supported initiative includes alloy optimization, advanced manufacturing development and integrated supply chain collaboration across Western-aligned partners.

The partnership has the potential to support increasing requirements from the US Department of War (DoW) linked to the ramp-up of domestically manufactured military drone motors and other critical defence equipment requiring secure, traceable and domestically sourced rare earth permanent magnets, amid increasing geopolitical instability, the companies said in a joint statement.

“IonicRE’s patented, made-in-Belfast magnet recycling technology offers an innovative solution for the supply of magnet REOs, and working with several Western magnet manufacturers, and now AML, we are building an integrated, ex-China rare earth supply chain across the Western world and beyond,” IonicRE CEO Tim Harrison said in a news release.

AML president Wade Senti added that the partnership will help “close the loop” on supply for critical inputs to the US industrial base.