Ionic Rare Earths has secured £12 million, approximately $16 million, in UK government support to advance a rare earth magnet recycling facility in Belfast, strengthening domestic supply chains for electric vehicles and advanced manufacturing. The funding, awarded under the DRIVE35 programme, reflects a broader policy push to reduce reliance on imported critical minerals while accelerating the industrial foundations of the zero-emission vehicle transition.

The capital support follows due diligence and is subject to final conditions. DRIVE35 is designed to move clean mobility technologies from pilot stages to commercial scale, with a particular focus on upstream inputs that have become strategic bottlenecks for electrification.

Building Domestic Capacity for Strategic Materials

The Belfast facility, operated through Ionic’s subsidiary Ionic Technologies, sits at the centre of the UK’s ambition to develop domestic capacity for rare earths, magnets, and related value chains by 2035. Rare earth elements such as neodymium and dysprosium are essential components in permanent magnet motors used across electric vehicles, wind turbines, robotics, aerospace, and advanced manufacturing.

At present, much of the world’s rare earth refining and magnet production is concentrated in China, exposing manufacturers elsewhere to supply risk, price volatility, and geopolitical pressure. Recycling-based recovery offers a pathway to diversify supply without expanding primary mining, while lowering environmental impacts across the value chain.

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From Recycling to Refining at Commercial Scale

The Belfast plant is expected to produce around 400 metric tonnes of high-purity separated rare earth oxides annually using Ionic’s long-loop magnet recycling process. For industrial buyers and policymakers, the ability to separate and refine material domestically is as critical as overall volume. Refining remains the main choke point for non-Chinese supply chains, and local processing capacity is essential for translating recycled feedstock into usable industrial inputs.

Ian Constance, Chief Executive Officer of the Advanced Propulsion Centre UK, which is involved in the DRIVE35 programme, said the development of a commercial magnet recycling plant in Belfast would directly support the UK’s automotive and advanced manufacturing sectors as they scale electric drivetrains and associated technologies.

Financing Structure and Industrial Momentum

The £12 million grant contributes to a broader £85 million financing package planned for the project. Ionic Rare Earths said discussions are ongoing with multiple parties to secure the remaining capital, highlighting growing investor interest in downstream magnet infrastructure and circular economy solutions for critical minerals.

Access to full project financing will shape construction timelines, commissioning, and integration with UK-based component manufacturers. The investment also aligns with a wider effort to localise high-value segments of the electric vehicle supply chain, extending beyond battery cells into motors, magnets, recycling, and specialty materials.

Policy, Governance, and ESG Dimensions

Critical minerals have rapidly moved from a technical concern to a geopolitical priority. Governments are increasingly treating supply chains for rare earths and other strategic materials as infrastructure assets, linking industrial decarbonisation with national security, trade resilience, and economic competitiveness.

From an ESG perspective, recycled rare earth magnets offer lower lifecycle emissions and reduced environmental disruption compared with primary extraction. For manufacturers and investors, this improves Scope 3 emissions accounting while supporting circularity objectives embedded in UK and European environmental policy frameworks.

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Why the Market Is Paying Attention

For C-suite leaders and procurement teams, the Belfast project stands out on several fronts. Domestic separation and refining capacity reduces exposure at one of the most vulnerable points in the electric vehicle value chain. Public capital support lowers financial risk in a sector long viewed as commercially challenging. Perhaps most importantly, policy momentum is shifting from research and demonstration projects toward full commercial-scale recycling and processing facilities.

Automakers, Tier 1 suppliers, and clean mobility investors will be watching how Ionic completes its financing and secures offtake arrangements. If successful, the project could help establish a benchmark for the commercial viability of rare earth recycling infrastructure across Europe.

A Global Race for Secure Supply

The UK’s move mirrors actions elsewhere. The US Inflation Reduction Act, the EU Critical Raw Materials Act, and industrial strategies in Japan and other regions all aim to diversify rare earth supply through a mix of mining, processing, and recycling. Despite these efforts, China continues to dominate refining and magnet production, making diversification both a climate and trade imperative.

Within that global context, the Belfast recycling facility represents a tangible step toward rebalancing critical mineral supply chains. If delivered at scale, it could support electric vehicle growth, strengthen industrial resilience, and contribute to a more secure and lower-carbon materials ecosystem as demand for rare earth magnets continues to rise through the decade.

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