Iondrive Updates Economics For IONSolv US Rare Earth Processing Module

Iondrive (ASX: ION) has modelled a post-tax net present value of US$243 million for a single IONSolv rare earth processing module in the US, supporting its planned first commercial development in Oklahoma.

The updated technical and economic evaluation models annual EBITDA of US$62.1m on US$121.8m of revenue from a module processing 2,402 tonnes of end-of-life permanent magnet feedstock annually.

Development capital is estimated at US$11.9m, with the module expected to produce about 630tpa of rare earth oxide (REO) product, including around 624tpa of payable neodymium, praseodymium, and dysprosium oxide.

The base case assumes feedstock containing 30.66% REO, materially above the roughly 7.2% implied head grade used in Iondrive’s November 2025 evaluation and the principal reason modelled payable oxide production has increased from about 115tpa to around 624tpa.

The evaluation remains a study rather than a final investment decision, with commercial feedstock grade and availability, product pricing, integrated recoveries, site selection, permitting, funding, and customer arrangements still to be confirmed.

Magnet-Bearing Samples

Four commercial magnet-bearing feedstock samples assayed between 6.43% and 30.66% REO, with the current base case adopting the highest-grade sample and no supplier yet warranting that grade at commercial scale.

Iondrive has applied assumed overall flowsheet recoveries of 89.3% for neodymium oxide, 88.5% for praseodymium oxide and 88.8% for dysprosium oxide, below independently validated single-pass leach recoveries of 96.5%, 96.5% to 97.3%, and 93.5% to 93.6% respectively.

The independent validation applies only to laboratory recovery performance and does not extend to feedstock head grade or availability, pricing, capital and operating costs, or plant utilisation.

“The number that matters most in this study is not the rate of return, it is the feedstock,” chief executive officer Dr Grant Caffery said.

“The economics assume material at 30.66% REO, and confirming grade and availability at commercial scale is the work in front of us.”

Pricing and Commercial Pathway

The base case values recovered product at 90% of published North American benchmark assessments, producing a blended realised value of US$193 per kilogram, while no sales price has been contracted and no offtake agreement has been executed.

Dysprosium oxide represents less than 5% of modelled product mass but about 49.5% of annual revenue, making both its assumed feedstock content and Western benchmark pricing material to the economic outcome.

Iondrive is progressing a North American qualification campaign using 5t of feedstock and targeting about 1.4t of mixed REO in the fourth quarter of 2026, alongside feedstock supply discussions and customer qualification work.

The next development steps include front-end engineering design, site selection, permitting and approvals in Oklahoma, advancing feedstock supply and offtake arrangements, and securing funding before the board considers a FID.