Ionic Rare Earths (ASX:IXR) unit Ionic Rare Earths USA struck a joint venture agreement with US Strategic Metals to build magnet recycling facilities at the latter's fully permitted site in Missouri, US, according to a Thursday filing with the Australian bourse.
The new term sheet supersedes and "materially advance" the memorandum of understanding the parties struck in November 2025, per the filing.
The parties agreed on a non-binding basis to form a 50-50 joint venture to develop an integrated campus for the production of critical minerals and metals at the Missouri site. The proposed joint venture aims to construct one or more magnet and other rare earth recycling facilities, processing recycled permanent neodymium-iron-boron and samarium-cobalt magnets and magnet scrap, and also plans to evaluate the recycling of other heavy rare earth elements.
Ionic Rare Earths' Belfast subsidiary, Ionic Technologies, will contribute a non-exclusive license to the joint venture for its magnet recycling technology.
The planned venture will be funded with $100 million for the construction of initial recycling facilities, comprised of $95 million in funding from US Strategic Metals and a $5 million equity contribution split equally between Ionic Rare Earths USA and US Strategic Metals.
Ionic Rare Earths shares jumped over 10% in recent Thursday trade.