Highlights

• Ionic Rare Earths is ramping up high-purity dysprosium and terbium oxide production in response to urgent supply requests from global customers.
• China's export controls have dramatically reduced rare earth exports, creating opportunities for Western producers like Ionic.
• The Belfast facility operates 24/7, positioning the company as a key player in the ex-China heavy rare earth supply chain.

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Amid soaring global demand and China’s tightening export grip, Ionic Rare Earths Ltd. (opens in a new tab) (ASX: IXR) announced it is scaling up production of high-purity dysprosium and terbium oxides at its Belfast, UK facility. The move is in direct response to urgent supply requests from U.S., European, and Asian customers, particularly for defense and advanced manufacturing applications.

The Belfast plant, operated by Ionic’s 100%-owned subsidiary, Ionic Technologies, claims they have been up 24/7 since January 2024, processing end-of-life permanent magnets into separated rare earth oxides (REOs). Managing Director Tim Harrison confirmed that samples of Dy₂O₃ and Tb₄O₇ have been sent to Western customers and that multiple inbound inquiries—especially from automakers and defense contractors—have surged since China’s April 2025 rare earth export controls.

Ionic Rare Earths ranks seventh on the Rare Earth Exchanges (REEx) Heavy Rare Earth Element Project Rankings.

Strategic Context: China's Squeeze

According to Chinese customs data, exports of Dy and Tb in June hit historic lows, with just 1 kg of dysprosium and 1,200 kg of terbium exported—all to South Korea. This follows a complete halt in May and underscores the risk of concentrated critical mineral supply chains.

With prices for Dy and Tb tripling in Q2 2025, Ionic’s Belfast facility has become a crucial Western asset. Executive Chairman Brett Lynch emphasized the company’s readiness to serve the HREO market, calling it a “critical turning point” for rare earth geopolitics.

REEx Takeaway for Investors

This news cements Ionic as a key player in the ex-China heavy rare earth supply chain—with proven tech, existing capacity, and a government-backed commercial roadmap. The company also leads the £11 million “CirculaREEconomy” UK initiative and has joint ventures in Brazil and plans for the U.S. market.

But critical questions remain:

• Will the U.S. Department of Defense or Department of Energy sign off-take or funding agreements?
• How scalable is the Belfast operation, and how quickly can it meet defense-grade HREO purity at volume?
• Can Ionic replicate its Belfast model in North America to anchor domestic HREO production?

Rare Earth Exchanges (REEx) has very solid sources informing us that U.S. federal stakeholders reportedly are inquiring about heavy rare earth capacity In multiple nations and regions.

Source: ASX Release by Ionic Rare Earths Ltd, July 30, 2025