Australian rare earth recycling company Ionic Rare Earths (IonicRE) has signed agreements with Florida-based Advanced Magnet Lab (AML) to supply recycled rare earth oxides for domestic magnet manufacturing, marking another step toward building a more secure supply chain for critical materials used in defense technologies and commercial applications.
Under binding sales agreements announced May 29, IonicRE will supply neodymium/praseodymium oxide (NdPr) and dysprosium oxide (Dy2O3) to AML as part of a recently awarded U.S. Defense Logistics Agency (DLA) contract. The contract aims to qualify domestically produced neodymium iron boron (NdFeB) permanent magnets for defense applications.
The companies also signed a memorandum of understanding to collaborate on supplying rare earth oxides and recycling swarf and pre-consumer scrap generated during magnet manufacturing.
The partnership comes as the US continues efforts to strengthen domestic production of critical minerals and reduce dependence on overseas supply chains. Rare earth magnets are used in a variety of products, including electric vehicles, wind turbines, electronics and military equipment.
According to IonicRE, the agreement supports its strategy of expanding rare earth refining and magnet recycling operations while helping establish secure supply chains in the United States and Europe.
The company said the partnership could help meet growing demand from the US defense sector as domestic manufacturing of military drones and other defense systems expands. Many of those products require rare earth permanent magnets sourced through secure and traceable supply chains.
AML President Wade Senti told Resource Recycling that recycling could play a major role in strengthening the domestic rare earth supply chain while new mining and processing projects continue to develop. “The only way that you really start creating a supply chain is by doing it,” he said. “Small steps equal big leaps over time.” Senti added that large volumes of end-of-life products containing rare earth magnets are already available for recycling, making recycled feedstock a practical near-term source of material for US manufacturers.
Under the agreement, IonicRE will provide rare earth oxide feedstock for AML’s PM-Wire manufacturing platform, which is designed to support scalable magnet production in the United States. AML’s DLA-supported initiative includes alloy optimization, manufacturing development and collaboration with supply chain partners.
“IonicRE’s patented, made-in-Belfast magnet recycling technology offers an innovative solution for the supply of magnet rare earth oxides,” IonicRE Executive Chairman Brett Lynch said in a statement. “Working with several Western magnet manufacturers, and now AML, we are building an integrated, ex-China rare earth supply chain across the Western world and beyond.”
Senti said the partnership supports the company’s goal of creating a traceable and sustainable supply chain for critical materials.
“We are thrilled to bring IonicRE into our downstream demand and support AML’s mission of a fully traceable and sustainable supply chain that can grow with our customer base,” Senti said in a statement. “This evolving partnership will help close the loop on supply for critical inputs to the U.S. industrial base.”
AML recently received a $2 million DLA contract to support qualification activities for domestically produced NdFeB magnets used in defense systems. IonicRE will serve as a supplier of the rare earth oxides needed for magnet production.
The agreement is the latest move by IonicRE to expand its presence in the United States. Last year, the company signed a memorandum of understanding with Missouri-based US Strategic Metals to develop downstream processing and supply chain infrastructure at a site near St. Louis. The project includes plans to deploy Ionic Technologies’ rare earth permanent magnet recycling technology and develop commercial recycling capacity for NdFeB and samarium-cobalt magnets.
As demand for critical minerals continues to grow, interest in rare earth recycling has increased as a way to recover valuable materials from manufacturing scrap and end-of-life products. Companies involved in the sector say recycling could help supplement domestic supplies while reducing reliance on imported materials.
The IonicRE-AML partnership reflects broader efforts to incorporate recycled materials into critical mineral supply chains and expand domestic manufacturing capacity for products that support both industrial and defense applications.
