ASX-listed Iondrive says an economic evaluation that puts a US$243 million after-tax NPV on an $11.9 million project underlines the commercial case for its IONSolv rare earth recycling technology.
The company aims to establish a US beachhead for its proprietary IONSolv solvent-based extraction “urban mining” platform to produce about 630 tonnes per annum of rare earth oxides from recycled end-of-life permanent magnets. An initial 2400tpa IONSolv module in Oklahoma would produce mainly payable neodymium, praseodymium and dysprosium oxides for midstream and downstream groups supplying the automotive, robotics, energy and defence sectors.
Iondrive said significantly improved economics in its latest study, compared with a November 2025 evaluation, were heavily dependent on much higher-grade feedstock being available (30.66% rare earth oxide content versus 7.2%) to boost its modelled payable oxide output more than fivefold.
“The composition of the feedstock is also significant, particularly its higher dysprosium content,” the company said.
“That distinction is important for investors because the economics depend heavily on confirming that feedstock of the assumed grade and composition can be sourced at commercial scale.”
Iondrive’s latest study modelled average neodymium, praseodymium and dysprosium oxide recoveries that were below its independently validated single-pass leach testing results, it said. “However, those [independent] laboratory results do not demonstrate recovery through the entire process to final rare earth oxide product. Iondrive still needs to validate the downstream recovery assumptions through planned bulk and integrated testwork, after which the recovery assumptions and economic model are expected to be reviewed and updated.”
Iondrive CEO Grant Caffery said the company needed to demonstrate it could source the right feedstock at commercial scale.
“The number that matters most in this study is not the rate of return,” he said.
“It is the feedstock.
“The economics assume material at 30.66% REO and confirming grade and availability at commercial scale is the work in front of us. That is where the qualification campaign and the supply arrangements are directed.”
Caffery said Iondrive’s broader strategy aimed to establish multiple IONSolv modules subject to feedstock availability and market demand.
