Ionic Rare Earths applies for UK gov’t grant for commercial plant
The potential cornerstone capital grant, says IonicRE, could provide the UK with sovereign magnet REO capability for the first time. It follows the Belfast demonstration plant’s success in becoming the first producer of recycled magnet REOs in the Western world, based on technology developed at Queen’s University Belfast.
The application was submitted via the Automotive Transformation Fund (ATF), administered by the Advanced Propulsion Centre (APC), for automotive manufacturing and supply chains. The APC is dedicated to supporting the UK’s global leadership position in scientific research, automotive engineering and net zero goals.
The grant application follows the company’s recent release of a feasibility study that showed “strong potential for a profitable and unique commercial REO manufacturing facility” capable of producing 400 tonnes of separated magnet REOs per year over a 20-year life.
The study highlighted the project’s positive financial outcomes, including a post-tax net present value (at 7.5% discount rate) of $502 million, an internal rate of return of 43.6%, and capital payback within 2.4 years. The estimated capex for the commercial facility is $108.7 million.
IonicRE anticipates the potential additional UK government funding could add to funds from strategic investors and debt financiers, securing the total investment necessary to progress towards a final investment decision in the first half of calendar 2025.
“Having shown with our recent feasibility study the positive economics of a commercial REO business, IonicRE looks forward to driving its development even faster with vital financial support from the UK government, which aligns with its vision of creating a circular economy for critical raw materials,” managing director Tim Harrison said in a news release.
Harrison also said the UK government “has consistently shown strong backing” for its Ionic Technologies subsidiary and its patented magnet recycling technology, having provided various grants to support the development of this made-in-Belfast innovation.
Ionic Technologies has previously benefited from the UK government’s financial support, with up to £5 million of funding and commitments received to date. These include two recent grants with a combined value of £1.27 million, including direct funding of £470,000, to foster REE supply chain partnerships.
The company is also exploring additional government-backed financing for projects that have the potential to facilitate the UK’s energy transition and drive regional growth. This combination has the potential to significantly reduce the equity component required to finance the commercial facility, it said.
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