Belfast-based Ionic Technologies is turning end-of-life magnets into a strategic lifeline for electric vehicle manufacturers, as China tightens control over global rare earth supply chains. Backed by £11 million in UK Government funding for its CirculaREEconomy project, the company is scaling up to redefine the circular economy in automotive magnet production.
The automotive industry faces growing concerns over rare earth shortages. China’s export restrictions on seven critical elements — including neodymium, praseodymium, dysprosium, and terbium — have disrupted production worldwide.
Ionic Technologies in Belfast offers a compelling alternative, recycling these essential metals from end-of-life permanent magnets for high-performance EV motors. Thomas Kelly, Director of Operations, explains: "Our technology utilises a long-loop process, which means that we produce rare earth oxides that are identical to material produced via mining and refining. This enables full supply chain resilience, because it can be used to make any grade of magnet, including the highest specification."
Each electric vehicle requires roughly 1.4 kg of critical rare earth metals for its motors. Ionic’s proprietary hydrometallurgical process produces separated rare earth oxides at purities exceeding 99.5%, matching the exacting automotive standards.
The environmental impact is substantial: a peer-reviewed study shows emission reductions of up to 61% compared to primary mining. Kelly highlights the CO₂ advantage: "The technology represents an easy win on CO₂ emissions, with a like-for-like reduction of up to 61% CO₂ versus primary sourced material, with no performance compromise, and there is a clear circularity opportunity as well."
Currently, Belfast’s demonstration plant produces around ten tonnes of separated rare earth oxides per year. Designed to reflect a commercial-scale facility, it can scale rapidly: "It is our intention to deliver a 400 tonnes per annum capacity plant very soon, which will take around two years to deliver."
Kelly adds that demand is surging: "Since the implementation of export controls on heavy rare earths in April, we have received a number of in-bound enquiries for the supply of Dysprosium Oxide and Terbium Oxide. We are working with our partners in the supply chain to create some stability and resilience by targeting strategic offtake partnerships." The commercial plant will support a significant portion of the UK and European e-motor industry, powering everything from EVs to wind turbines.
A key advantage of Ionic’s technology is its flexibility. Kelly notes: "Our process is able to accommodate magnets that are damaged and subjected to oxidation, or magnets that are intact with coatings still present. We have received and recycled magnets originating from something as big as a wind turbine… to magnets weighing a few grams from hard drives." This adaptability ensures that the supply chain can meet the growing demand as early-generation wind turbines and EVs reach end-of-life.
The CirculaREEconomy project unites major OEMs and supply chain partners. Ford, Bentley, and Wrightbus are testing recycled magnets, while Less Common Metals, EMR, GKN, and Vacuumschmelze contribute technical expertise.
Kelly highlights the government’s role: "The CirculaREEconomy project enables this supply chain to develop and accelerates some of the technology required to commercialise every stage. We are also really pleased to be working with a tremendous group of organisations, who are all motivated to develop a robust, resilient supply chain route in the UK."
Ionic is already looking beyond the UK. Discussions are advanced for US expansion, with multiple plants expected to follow Belfast, meeting the US Government’s push for rare earth security. "There are a lot of opportunities in the USA right now. We have a number of different opportunities under consideration serving different markets and customers… It is highly likely that multiple US-based plants will follow the plant in the UK, owing to the size of the market there and the competitive operating environment as well as a clear push from the US Government to attract rare earth technologies."
By 2030, Belfast is expected to produce at design capacity, supplying 400 tonnes of recycled rare earth oxides annually. Kelly says: "The commercial plant design is effectively plug and play, so the solution can be located anywhere that makes sense. We expect a number of these facilities to appear globally to serve the growing global demand for circularity and critical material security."
Rather than competing directly with Chinese primary mining, Ionic focuses on creating a new supply chain based on recycling. The approach is cost-efficient, environmentally superior, and strategically vital for Western manufacturers.
Kelly sums it up: "Because of our capability to produce high-purity heavy rare earth oxides, there is also an obvious strategic alignment with high specification magnets for use in high-performance e-motors, which may contain higher quantities of these elements to demonstrate improved magnetic properties at high temperature. However, the material is appropriate for all rare earth permanent magnet grades, so we represent a supply chain option for any OEM looking to prevent a repeat of recent supply chain interruptions."
With the automotive industry accelerating its electric transition, Ionic Technologies’ circular model demonstrates that the future of sustainable mobility may lie not in mining the Earth, but in mining our existing resources more intelligently.
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