Ionic Rare Earths continues to make steady progress at Makuutu Project in Uganda

Ionic Rare Earths Ltd (ASX:IXR) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant, long life, high margin, supplier of high-value magnet and heavy rare earths oxides (REO).

Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)’s rare earth oxide (REO) recycling joint venture, Viridion, has secured significant funding from the Brazilian government to fast-track the development of rare earth refining and magnet recycling facilities in Brazil.

The backing from the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP)  is set to accelerate Viridion’s ambitious plans to establish a sustainable, local supply chain for critical rare earth elements.

The funding, a key development for IonicRE’s expansion in the critical minerals space, will primarily support the establishment of pilot rare earth refining plants, magnet recycling facilities and metallurgical testing — crucial steps as the global push for secure and sustainable rare earth supply chains intensifies, particularly amid lead producer China’s increasing export controls.

Viridion, a 50/50 joint venture between IonicRE and Viridis Mining and Minerals Ltd (ASX:VMM), has received support from both the Brazilian federal government and the state of Minas Gerais. The funding allocation follows an initial call launched in January 2025, in which the Brazilian authorities committed R$5 billion (about US$900 million) to companies engaged in transforming strategic minerals.

Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)CEO Tim Harrison joined Proactive earlier this week after the company announced the first shipment of recycled rare earth oxides to Brazil, as part of its strategy to build an integrated and sustainable rare earth supply chain through the Viridion joint venture.

Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)has secured firm commitments to raise A$3 million (before costs) via a convertible note issue, subject to shareholder approval. The funds will be used to advance the company’s rare earth projects in the United Kingdom, United States, Brazil and Uganda’s flagship Makuutu project, and for general working capital.

The convertible notes are set to convert into shares at a defined future date or at the discretion of the holder, with accompanying options offered in lieu of interest. Shareholder approval will be sought at an extraordinary general meeting (EGM) scheduled for July 2025.

Australia’s bi-partisan Critical Minerals Strategy 2023–2030, launched in 2019, is a seven-year roadmap designed to capitalise on this country’s exceptionally rich natural reserves of natural resources at a time when there is a growing need to encourage domestic production.

Read: Ionic Rare Earths inks MoU with Less Common Metals to build Western magnet REE supply chain

Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) managing director Tim Harrison talked with Proactive’s Tylah Tully about the company’s significant milestone of applying for a capital grant from the UK Government to fast-track a commercial battery recycling facility in Belfast.

Harrison called the application a "big milestone" for the team, adding that it could serve as a cornerstone investment to advance the project.

The Belfast facility feasibility study indicated a net present value of $500 million and a post-tax internal rate of return of 44%, with a capital cost of £85 million.