Ionic Rare Earths Limited has entered into a non-binding term sheet with Missouri-based US Strategic Metals to form a 50-50 joint venture for the construction of rare earth magnet recycling facilities in Missouri.

The agreement supersedes a memorandum of understanding signed by the parties in November 2025. The proposed joint venture plans to develop an integrated campus on US Strategic Metals' 1,800-acre fully permitted site near Fredericktown, processing permanent neodymium-iron-boron and samarium-cobalt magnets and magnet scrap, while also evaluating the recycling of other heavy rare earth elements.

The arrangement is intended to be funded with US$100 million for the construction of initial facilities. This capital package comprises US$95 million from US Strategic Metals and a US$5 million equity contribution split equally between Ionic Rare Earths' U.S. subsidiary, Ionic Rare Earths USA, and US Strategic Metals. Any additional capital required will be funded directly by the joint venture.

The initial US$5 million equity contribution is earmarked to complete Front End Engineering Design for the facility and accelerate demonstration-scale magnet recycling at the site or another agreed location. Ionic Rare Earths' Belfast subsidiary, Ionic Technologies, will contribute a non-exclusive licence for its magnet recycling technology to the proposed venture.

"The proposed JV will seek to provide IonicRE with a practical and capital-efficient method of building rare earth magnet recycling capacity in the United States, the world's biggest economy."

"Magnet recycling is a fast and low-cost pathway to developing a secure, sovereign and sustainable rare earths supply chain. It is intended that the proposed JV will deliver on the capability already demonstrated at demonstration scale at Ionic Technologies in the UK to deliver a resilient supply of high purity, separated REOs for U.S. industrial needs."

— Tim Harrison, Managing Director

Under the proposed structure, Ionic Rare Earths USA will chair a Technical Operations Committee, holding primary responsibility for technical, operational, commercial and feedstock-procurement matters. Day-to-day management will be overseen by a board comprising three managers appointed by US Strategic Metals and two by Ionic Rare Earths USA.

The formation of the joint venture remains conditional on entering into definitive agreements, the completion of capital contributions by each party, and the finalisation of required documentation. The companies are targeting the completion of definitive agreements by the end of 2026.

Read the full announcement: IXR AND USSM TO FORM USA MAGNET RECYCLING JV