ASX-listed Ionic Rare Earths has signed two binding sale agreements with US-based Advanced Magnet Lab (AML) for separated magnet rare earth oxides.

The first agreement involves the supply of neodymium and praseodymium oxide, and the second dysprosium oxide.  

AML was recently awarded a contract by the US Defence Logistics Agency to qualify domestically-produced, high-grade sintered neodymium iron boron permanent magnets for defence applications.

The Florida-based, privately held AML aims to use the $2-million contract funds to develop manufacturing solutions for domestic production and qualification of sintered permanent magnets for defence and commercial industries — with plans underway to rapidly scale manufacturing across end-use applications.

Ionic and AML also signed a non-binding memorandum of understanding to collaborate on the supply of magnet rare earth oxides and recycling of swarf and pre-consumer waste – which represents another important step in Ionic’s strategy to establish secure, sovereign and sustainable ex-China rare earth supply chains across the US and Europe.

The AML and Ionic partnership can potentially support the increased requirements of the US Department of War linked to the ramp-up of domestically-manufactured military drone motors and other critical defence equipment requiring secure and traceable rare earth permanent magnets.

Ionic will provide rare earth oxide feedstock to support AML’s PM-Wire manufacturing platform, which is designed to enable scalable, traceable and high-performance permanent magnet production.

By combining advanced refining, recycling and magnet manufacturing capabilities, Ionic and AML aim to contribute to the development of a resilient Western rare earth supply chain capable of supporting the evolving needs of government and industry.

“Ionic is excited to form this partnership with AML, working together in the] development of innovative permanent magnet solutions, as we build a secure and sustainable supply of rare earth permanent magnets for the US and other Western nations.

“Ionic’s patented, made-in-Belfast magnet recycling technology offers an innovative solution for the supply of magnet rare earth oxides, and 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,” says Ionic MD and CEO Tim Harrison.

In turn, AML president Wade Senti says he is thrilled to bring Ionic into AML’s downstream demand and support AML’s mission of a fully traceable and sustainable supply chain that can grow with AML’s customer base.

“This evolving partnership will help ‘close the loop’ on supply for critical inputs to the US industrial base.”