Iondrive Secures $3.9M Grant, US and Australian Partnerships to Advance DES Recycling

Strategic Partnerships Expand Market Reach

Iondrive Limited (ASX – ION) has made significant strides in the third quarter of 2025, signing binding agreements with two major players in the battery and e-waste recycling sectors. In the United States, the company partnered with Colt Recycling LLC, a leading e-waste processor handling approximately 40 million pounds annually. This collaboration aims to evaluate Iondrive’s proprietary Deep Eutectic Solvent (DES) technology for recovering rare earth elements (REEs), a critical and often overlooked component in existing recycling methods.

Simultaneously, Iondrive secured a deal with Australian lithium-ion battery recycler Livium Limited to access domestic feedstocks including batteries, solar panels, and rare earth magnets. This partnership not only provides vital real-world materials for testing but also opens the door for potential co-location of DES processing units, reinforcing Iondrive’s commitment to developing a robust domestic recycling ecosystem.

Pilot Plant Construction and Government Support

Construction of Iondrive’s pilot plant is now underway, marking a pivotal step toward commercialising its DES technology. The facility will be the first continuous, integrated demonstration of the process under commercial conditions, initially focusing on black mass recycling with flexibility to handle other urban mining feedstocks. With long-lead items ordered and commissioning scheduled to begin by December 2025, the project remains on track for full operation in early 2026.

Backing this development, Iondrive secured a non-dilutive grant from the Australian Government’s Industry Growth Program, covering 50% of the pilot plant’s construction and operating costs up to $3.9 million. This funding not only eases financial pressure but also signals strong governmental support for advancing critical minerals recycling technologies domestically.

Innovation in Graphite Recovery and European Validation

In a move to diversify revenue streams, Iondrive launched a CSIRO-backed research project to upgrade recovered graphite from spent lithium-ion batteries into anode-grade material. Graphite, which can constitute up to half the weight of a battery, is typically lost in conventional recycling. Successful development here could boost revenues by an estimated 25% at scale and grant Iondrive exclusive global rights to the resulting intellectual property.

On the international front, Iondrive is participating in a European benchmarking study led by RWTH Aachen University and Fraunhofer FFB, comparing its DES technology against established battery recycling methods. Additionally, the company joined a €3.1 million European battery recycling consortium, further validating its technology and expanding access to feedstock and funding.

Financial Position and Strategic Focus

At quarter’s end, Iondrive reported a cash balance of $4.0 million, with expected inflows of $3.2 million in the following quarter from tax incentives and grant instalments. The company also moved to divest its South Korean exploration business, aiming to reduce annual costs by approximately $600,000 and sharpen its focus on recycling technology development.

Overall, Iondrive’s recent activities demonstrate a clear trajectory toward commercialisation, supported by strategic partnerships, government funding, and international validation. The company’s DES technology, with its environmentally friendly and selective metal recovery process, positions it well within the growing circular economy for critical minerals.