Back

Iondrive Study Puts US$243m Value on Capital-Light US Rare Earth Recycling Module

Jane Morgan Management

Key Facts:

• Iondrive Limited has published an updated economic evaluation for its IONSolv™ rare earth recycling technology, assigning a post-tax net present value of US$243 million to a single US processing module requiring only US$11.9 million in development capital.
• The study models a 2,400-tonne-per-annum module processing end-of-life permanent magnets in Oklahoma, projecting annual revenue of US$121.8 million, EBITDA of US$62.1 million, and production of approximately 630 tonnes of rare earth oxides per year.
• The significantly improved economics compared to the November 2025 study are driven primarily by a higher-grade feedstock assumption of 30.66% rare earth oxides, up from approximately 7.2%, resulting in payable oxide production rising from roughly 115 tonnes to 624 tonnes annually.
• Confirming that feedstock of the assumed grade and composition can be sourced at commercial scale remains the most critical outstanding risk, with Iondrive directing its qualification campaign and supply arrangements towards addressing this uncertainty.
• Next steps include completing front-end engineering design, conducting a US commercial-scale feedstock qualification campaign, progressing site selection and permitting, and advancing supply, offtake and funding arrangements towards a final investment decision.

7 September 2026 - Adelaide, Australia | Iondrive Limited (ASX: ION) has strengthened the commercial case for its IONSolv™ rare earth recycling technology, with an updated economic evaluation assigning a US$243 million post-tax net present value to a single US processing module requiring an estimated US$11.9 million in development capital.

The study models a 2,400-tonne-per-annum IONSolv™ module processing end-of-life permanent magnets in the United States, supporting Iondrive’s plan to establish its first commercial module in Oklahoma. The evaluation remains a study rather than a final investment decision.

At the centre of the updated economics is the potential for relatively high earnings from a modest initial capital requirement. The model generates annual revenue of US$121.8 million and EBITDA of US$62.1 million, representing an EBITDA margin of 51%, while annual rare earth oxide production is estimated at approximately 630 tonnes.

Of that production, around 624 tonnes would comprise payable neodymium, praseodymium and dysprosium oxides, materials used across industries including automotive, robotics, clean energy and defence. Iondrive is targeting a US-based supply chain that would source end-of-life permanent magnets domestically, process them using IONSolv™ and supply recovered rare earth oxides to US customers.

The strategy is relevant against a backdrop of rare earth separation and refining capacity remaining heavily concentrated offshore. According to Iondrive, US manufacturers are seeking secure and traceable domestic sources of rare earth materials, creating the commercial setting for its proposed modular recycling approach.

The latest evaluation marks a substantial change from Iondrive’s November 2025 study, driven primarily by the feedstock now assumed in the model rather than a change in the underlying process.

The new base case assumes feedstock containing 30.66% rare earth oxides, compared with an implied grade of about 7.2% previously, while modelled payable oxide production has increased from approximately 115 tonnes to approximately 624 tonnes a year. The composition of the feedstock is also significant, particularly its higher dysprosium content.

That distinction is important for investors because the economics depend heavily on confirming that feedstock of the assumed grade and composition can be sourced at commercial scale. Iondrive identifies feedstock grade and availability as one of the largest drivers of the model, while product prices are also modelling assumptions rather than contracted sales prices.

The technical assumptions are deliberately below results already achieved in laboratory testing. The economic model assumes overall recoveries of 89.3% for neodymium oxide, 88.5% for praseodymium oxide and 88.8% for dysprosium oxide. Independently validated single-pass leach testing returned higher recoveries of 96.5%, 96.5–97.3% and 93.5–93.6%, respectively.

However, those laboratory results do not demonstrate recovery through the entire process to final rare earth oxide product. Iondrive still needs to validate the downstream recovery assumptions through planned bulk and integrated testwork, after which the recovery assumptions and economic model are expected to be reviewed and updated.

Iondrive Chief Executive Officer Dr Grant Caffery said:

“The updated work puts economics around a single commercial module using modelled overall flowsheet recoveries of approximately 89%. These assumptions sit below the independently validated single-pass leach results and allow for element-specific losses through the downstream flowsheet. Integrated testwork still needs to validate overall recovery through to final product.

“The number that matters most in this study is not the rate of return. It is the feedstock. The economics assume material at 30.66% REO, and confirming grade and availability at commercial scale is the work in front of us. That is where the qualification campaign and the supply arrangements are directed.

“On US$11.9 million of development capital for the first module, this is a small, capital-light project by the standards of the sector. Our job is to take it through engineering, feedstock and customer qualification, and funding, to an investment decision.”

The updated model also tests how the project economics respond to changes in its main assumptions. The post-tax NPV remains positive under every pricing scenario tested, ranging from US$40 million under a flat US$115/kg reference case to US$298 million at 100% of the referenced Platts CIF North America pricing. The study identifies realised product pricing and operating costs as the variables with the greatest impact on valuation.

Iondrive’s modular strategy is designed to allow processing capacity to be added incrementally and located close to sources of magnet waste. While the current economics cover only one module, the company’s broader strategy contemplates multiple modules where feedstock supply and customer demand support expansion.

The immediate work is now centred on converting the study assumptions into a development case. Iondrive plans to complete front-end engineering design and refine capital and operating cost estimates, undertake its US commercial-scale qualification campaign to confirm feedstock grade, composition and availability, and progress site selection, permitting and approvals. It will also advance feedstock supply, product offtake and funding arrangements towards a final investment decision.

Jane Morgan
Investor and Media Relations
[email protected]

Lewis Utting
Iondrive Limited
Chief Executive Officer (ceasing 1 Aug 2026)
Chief Strategy & Commercial Officer (from 1 Aug 2026)
[email protected]

About us:

About Iondrive Limited

Iondrive is developing IONSolv™, a metal extraction platform based on deep eutectic solvent chemistry, designed for the selective recovery of critical minerals from primary and secondary feedstocks. Unlike conventional hydrometallurgical and pyrometallurgical approaches, IONSolv™ operates at lower temperatures, avoids aggressive acid systems, and offers a tuneable chemistry able to selectively extract individual metals. Iondrive’s immediate commercial focus is the recovery of rare earth elements from end-of-life permanent magnets and the deployment of modular IONSolv™ processing capacity in the United States. Solar panel recycling and battery materials represent additional applications of the same platform.

Contact details:

Jane Morgan Management
Investor & Media Relations
[email protected]