Ionic Rare Earths Accelerates Heavy Rare Earth Supply Amid China Export Clampdown
Ionic Rare Earths’ Belfast plant is ramping up production of critical heavy rare earth oxides to meet soaring demand from Western markets following China’s export restrictions. This strategic move positions the company as a key supplier for defence, renewables, and advanced manufacturing sectors.
- Ionic Technologies increases dysprosium and terbium oxide output at Belfast plant
- Response to urgent supply requests from US, Europe, and Asia amid China export limits
- Tripling of heavy rare earth oxide prices in Q2 2025 due to constrained supply
- UK government-backed CirculaREEconomy project supports sustainable rare earth production
- IonicRE advancing commercialisation of rare earth recycling and separation technology
Strategic Production Ramp-Up
Ionic Rare Earths Limited (ASX, IXR) has announced a significant increase in production of heavy rare earth oxides, specifically dysprosium oxide (Dy2O3) and terbium oxide (Tb4O7), at its Belfast facility. This move directly responds to urgent supply requests from major manufacturers across the US, Europe, and Asia, who face critical shortages due to China's tightening export controls.
Since January 2024, Ionic Technologies, a wholly owned subsidiary of IonicRE, has operated its Belfast demonstration plant continuously, producing high-purity separated rare earth oxides. The recent surge in demand, coupled with China's April 2025 export restrictions on medium and heavy rare earths, has accelerated the company’s transition from demonstration to increased commercial production.
Market Dynamics and Supply Chain Implications
China’s near halt of dysprosium and terbium exports in May and June 2025 has created a supply vacuum in Western markets, pushing prices for these critical materials to triple within three months. Dysprosium and terbium are essential for manufacturing high-performance permanent magnets used in defence systems, electric vehicles, offshore wind turbines, and other advanced technologies.
IonicRE’s Belfast plant leverages patented, made-in-Belfast technology to produce these oxides to stringent industry standards, positioning the company as a leading Western supplier. This development is pivotal for Western manufacturers seeking secure, sustainable, and traceable sources outside China’s dominant supply chain.
Sustainability and Government Support
The company’s efforts are bolstered by UK government backing through the £11 million CirculaREEconomy project, which commenced in August 2025. This initiative aims to enhance the sustainability of rare earth supply chains by recycling and refining rare earth elements from end-of-life magnets and production waste, significantly reducing carbon emissions compared to traditional mining sources.
Peer-reviewed studies indicate Ionic Technologies’ recycling process can cut emissions by up to 61%, underscoring the environmental benefits of this circular economy approach. IonicRE’s vertically integrated strategy, including its Makuutu Rare Earths Project in Uganda and joint ventures in Brazil, further strengthens its global footprint in sustainable rare earth production.
Looking Ahead
While IonicRE has not disclosed specific commercial agreements yet, ongoing discussions with leading manufacturers in the US, Europe, and Asia signal strong market interest. The company’s ability to rapidly scale production and deliver high-purity heavy rare earth oxides could reshape the Western rare earth supply landscape amid geopolitical uncertainties.
As demand for critical materials intensifies, IonicRE’s technological edge and strategic partnerships may well define the future of rare earth supply chains outside China’s sphere, supporting key sectors from defence to renewable energy.
Bottom Line?
Ionic Rare Earths is poised to become a cornerstone of Western heavy rare earth supply amid escalating global supply tensions.
Questions in the middle?
- How quickly can IonicRE scale production to meet growing global demand?
- What commercial agreements will IonicRE secure with major Western manufacturers?
- How will ongoing geopolitical developments affect rare earth supply chain dynamics?
