Ionic Rare Earths (IXR) Investor update summary

Strategic progress, positioning, and technology

• Advancing magnet recycling technology in the U.K., U.S., and Brazil, leveraging government grants, partnerships, and patented, feedstock-agnostic processes for rare earth separation and recycling.

• Only Western producer to validate recycled, separated, high-purity magnet rare earth oxides, with demonstration-scale success and plans for a commercial Belfast plant by 2028.

• Modular technology enables recycling of end-of-life magnets and swarf to >99.5% purity REOs, with significant carbon and cost advantages over mining.

• Strong engagement with Western governments and supply chain partners, including JS Link, EMR, and USSM, to support energy transition, defense, and AI-driven demand.

• Three core business units: Belfast recycling plant (UK), Viridion JV (Brazil), and Makuutu project (Uganda), each with distinct supply chain roles and government support.

Market dynamics and financial outlook

• Rare earth demand is growing at 7–8% CAGR, driven by EVs, renewables, defense, and AI, with Western REO price premiums widening due to Chinese export controls.

• Western governments are investing in domestic supply chains to reduce reliance on China, with new policies and funding in the US and UK.

• Belfast facility economics are robust, with a post-tax NPV of US$502m, 43.6% IRR, and a 2.4-year payback at 2024 prices, supported by a £12m UK government grant and additional funding.

• Recycling is expected to scale faster than primary supply, offering rapid market entry and sovereign capacity for Western markets.

• Company trades at a significant discount to U.S. peers, with potential for re-rating as milestones are achieved.

Sustainability and competitive advantages

• Recycling process reduces CO2 emissions by up to 61% compared to mining, with no radionuclides or SO2 emissions.

• Only proven long-loop recycling process outside China, enabling closed-loop magnet circularity and first-mover advantage in Europe.

• Technology can process diverse feedstocks and adapt to varying magnet compositions, supported by ongoing IP development and new patents.

• Recycling delivers higher returns and lower risks than mining, with shorter supply chains, lower capex, and strong OEM support.

• Strong focus on reducing carbon footprint and differentiating products for ESG-conscious customers.