After diving deep into the technical details of our Ionic Technologies acquisition and comparing it against conventional rare earth processing over the past few years, I believe the market fundamentally misunderstands what we actually own . The complexity of rare earth elements separation and the revolutionary nature of our Multifunctional Amide Ionic Liquids (MAIL)technology represents a paradigm shift that most investors simply don't understand because of the complexities in process and refining REE, and it's not being reflected in our share price.
Our technology can process mixed rare earth carbonates from mining operations AND extract individual rare earth elements from end-of-life NdFeB magnets to 99.9%+ purity . This dual capability positions IXR to capture value from both primary production and the rapidly growing magnet recycling market.
Understanding Ionic Technologies' Revolutionary Rare Earth Processing IP, Why the Market Hasn'grasped the True Value Yet.
The Complexity Challenge: Why Rare Earth Processing is So Difficult
The global rare earth processing industry remains one of the most technically challenging sectors in modern mining and manufacturing, requiring over 100 processing stages and significant amounts of powerful acids to separate individual elements . China currently dominates this space, controlling approximately 70% of global rare earth mining and over 85%of processing capacity, creating inherent supply risks for Western markets. The conventional processing methods used in China require enormous quantities of chemicals, with seven to eight tonnes of ammonium sulphate needed to extract just one tonne of rare earths.
Traditional Western attempts to compete with Chinese rare earth processing face several critical barriers. Conventional solvent extraction systems typically require 100200 separation stages to achieve complete lanthanide separation, operating at extremely low pH levels below 1.5 and consuming massive amounts of strong acids. These processes generate substantial toxic waste streams, create volatile organic compound emissions, and present significant fire and explosion hazards due to their reliance on organic diluents like kerosene and n-heptane.
Ionic Technologies' Game-Changing MAIL System, Revolutionary Technical Performance
Ionic Technologies' patented (Multifunctional Amide Ionic Liquids MAIL) system represents fundamental breakthrough in rare earth processing technology. The system achieves separation factors exceeding 1,300 for neodymium/dysprosium pairs, compared to conventional extractants that typically achieve factors around 2.0 between adjacent elements . This dramatic improvement enables the reduction of separation stages from over 150 required unconventional plants to just 10–15 stages in the Ionic Technologies process.
The MAIL technology operates at optimum pH levels between 2 and 4 throughout the entire process, significantly reducing acid consumption compared to conventional methods that require pH levels below 1.5 . Metallurgical recovery rates of 89-90% have been demonstrated for neodymium, praseodymium, dysprosium, and terbium, with final product purities exceeding 99.9%
Brazil's Strategic Move: Understanding What Others Have Missed, Government Recognition and Support
While many Western markets struggle to understand the significance of Ionic Technologies'breakthrough, the Brazilian government has moved swiftly to secure access to this revolutionary technology . In June 2025, Viridion Rare Earths Technologies - a 50/50 joint venture between Ionic Rare Earths (IXR) and Viridis Mining and Minerals (VMM) - was selected by Brazil's BNDES and FINEP to receive significant funding from a US$903 million program supporting strategic mineral projects.
This selection followed a competitive process initiated in January 2025, with economic feasibi lit yduring commercial production being a key factor in the selection process . The Brazilian authorities have committed R$5 billion (approximately US$900 million) to companies engaged untransforming strategic minerals, with an additional R$3 billion (around US$540 million) dedicated specifically to technology development and innovation centres.
The Brazilian government's strategic vision becomes even clearer when considering their investment in LabFab (now CIT SENAI ITR), Latin America's first permanent magnet manufacturing facility . Located in Lagoa Santa, Minas Gerais, this facility represents Brazil's commitment to developing a complete rare earth supply chain independent of Chinese control.
LabFab is scheduled to begin operations with initial capacity to produce 100 tonnes ofpermanent magnets per year, with the Federation of Industries of Minas Gerais (FIEMG) planningto grow production to 200 tonnes annually . The facility is targeting a ramp-up in NdFeBproduction to 100 tonnes per annum by the end of 2026.
Historic First Delivery: Proving the Technology Works
In May 2025, Viridion successfully delivered the first locally sourced magnetic rare earth oxidesto Lab Fab, marking a historic milestone for the Latin American rare earth industry .These high-purity neodymium, praseodymium, dysprosium, and terbium oxides were sourcedfrom end-of-life magnets recovered within Brazil, primarily from decommissioned MRI machinesand wind turbine generators.
China's new Control:
Recent developments in June 2025, China has indeed implemented stringent newrequirements for rare earth exports that demand sensitive business information from foreigncompanies, All exports of the affected rare earths from China now require a licence from the Chinese Ministryof Commerce MOFCOM, obtained under China's Export Control Law . The licensingapplications may take up to 45 working days, with longer timelines possible for sensitive orincomplete submissions . While the Chinese supplier formally submits the application, theEuropean or foreign customer must provide critical end-use and technical documentation.
So, The evidence clearly indicates that if Ionic Technologies were to engage with Chinese rare earthsuppliers, they would be required to share sensitive IP and business information under China'scurrent export licensing regime. Thisincludes customer lists, production processes, application details, and in some cases, evenoperational schematics and trade secrets.
Most people don't realize that the real bottleneck in rare earths isn't mining—its processing andseparation. IXRʼs proprietary ionic liquid technology is the first Western solution proven to deliverhigh-purity, separated rare earth oxides from both mining and recycling streams, with a fractionof the environmental and financial cost of traditional methods. As China tightens its grip on rareearth technology, IXRʼs IP is not just important—itʼs potentially transformative for the entireWestern supply chain.
IXR's Ionic Technologies IP represents a potential paradigm shift in global rare earth supplychains . We own technology that could enable Western rare earth processing independenc while capturing the growing magnet recycling market. The November 2024 Feasibility Study validates commercial viability, but I believe the MarketCast't yet recognized that we may own the key to breaking China's rare earth processing stranglehold. The technical complexity that makes rare earth processing so challenging is exactly why ourionic liquid breakthrough is so valuable - and why the market hasn't yet understood what wetruly own.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)