IXR (ASX) General Chat / Discussion

Originally posted by roblun: ↑

Raytheon, now part of RTX Corporation, faces significant challenges in sourcing magnets for its military defence production due to complex supply chain vulnerabilities and evolving regulatory requirements. The company's approach to magnet procurement has been fundamentally shaped by national security concerns and China's dominance in rare earth materials processing.

Raytheon, as a systems integrator, assembles defence products like surface-to-air missiles using magnets sourced both from internal manufacturing and external suppliers. However, the rare earth permanent magnets (especially neodymium-iron-boron and samarium-cobalt types) used in these systems are predominantly derived from rare earth materials that have historically been processed in China. This is because China controls about 95% of the world’s rare earth processing capacity, making it the primary source of rare earth alloys and magnets embedded in many defence components, including those Raytheon uses

https://rareearthexchanges.com/news/rare-earths-and-the-u-s-defense-supply-chain-from-bidens-ban-to-trumps-trade-gambit/

This comprehensive table format organizes Raytheon's complex magnet sourcing strategy across multiple dimensions, highlighting the transition from Chinese dependency toward domestic and allied supply chains while maintaining critical defence capabilities.

Ionic's Belfast facility will produce high-purity rare earth oxides including neodymium oxide (Nd₂O₃), praseodymium oxide (Pr₆O₁₁), dysprosium oxide (Dy₂O₃), and terbium oxide (Tb₄O₇). These materials are essential for defence applications, particularly in permanent magnet manufacturing for military systems.

By 2027, Ionic's Belfast facility would be among the first Western commercial-scale rare earth oxide recycling operations, positioning the company as a "first mover" in sovereign supply chain development. The facility is already the first producer of recycled separated magnet rare earth oxides in the Western world through its demonstration plant.

Given the DoD's $439 million investment in domestic rare earth supply chains and the critical 2027 deadline, Ionic's Belfast facility represents a viable option for Department of Defence contracting. The company's proven technology, government backing, and alignment with 2027 operational targets create favourable conditions for potential DoD engagement.

The facility's 400 tonnes annual production capacity, while significant for recycling operations, would represent a portion of total DoD rare earth oxide requirements. This suggests potential for both direct supply contracts and strategic partnership arrangements supporting broader supply chain resilience objectives.

The combination of Ionic's operational timeline, technological capabilities, regulatory compliance, and government support positions the company as a credible candidate for DoD rare earth oxide supply contracts beginning in 2027, contributing to the broader objective of establishing secure, non-Chinese rare earth supply chains for U.S. defence applications.

Remember, Brett has been summoned back to the US again!

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If Ionic Rare Earths Commercial Plant had a DoD contract to supply Rare Earth Oxides from its Commercial plant in 2027?

If Ionic Rare Earths (IXR) were to establish a commercial plant in the United States—for example,in Texas or South Carolina—with a production capacity similar to its planned Belfast facility 400 tonnes per year of separated rare earth oxides, primarily (Nd, Pr, Dy, and Tb), it could directly contribute to the U.S. Department of Defence's (DoD) annual rare earth oxide (REO) needs for permanent magnet production.

This is an Approximation, mainly Industrial known amounts, going by a typical magnet composition, also depending on the application,

DoD requires approximately 1,475.5 tonnes per year of separated REOs (Nd, Pr, Dy, Tb, and Sm) to produce 3,000 tonnes of magnets, with Nd, Pr, Dy,and Tb oxides specifically used for NdFeB magnets (not including Sm for SmCo magnets). The share of Nd, Pr, Dy, and Tb oxides in this total depends on the magnet mix, but for a high estimate focused on NdFeB magnet needs, these oxides (excluding Sm) comprise about 70% ofthe total REO requirement in the context of defence-grade NdFeB magnets.

The DoD's annual requirement of 3,000 tonnes of permanent magnets represents a significant challenge given current domestic production capabilities. While substantial investment shave been made to establish a domestic supply chain by 2027, the current production capacity falls short of meeting the full requirement.

The success of the DoD's strategy depends on the timely completion of multiple projects across the entire supply chain, from mining to magnet manufacturing, as well as effective international partnerships with allied nations. The period from 2025 to 2027 represents a critical transition phase as new facilities come online and begin production, potentially transforming the permanent magnet supply landscape for U.S. defence applications

With a U.S. commercial plant at 400 tonnes/year capacity, Ionic Rare Earths could supply a substantial portion—either about 27% of all REOs or about 39% of the Nd, Pr, Dy, Tb oxides needed for DoD NdFeB magnet production—depending on the specific focus of the facility. This would significantly bolster U.S. domestic supply chain resilience for critical defence materials.This would have to be in collaboration with other companies to supply the inventory needed for the manufacturing of high-end magnet applications through the entire supply chain by 2027.

https://www.mining.com/us-china-deal-and-more-dod-money-will-not-loosen-chinas-grip-on-military-grade-rare-earths-magnets/
https://www.globalsecurity.org/military/library/news/2024/03/mil-240311-dodnews02.htm
https://www.oilandgas360.com/u-s-set-to-secure-critical-domestic-rare-earths-supply-chain-by-2027/
https://www.*.co.uk/companies/news/1073159/ionic-rare-earths-eyes-us-expansion-for-rare-earth-refinery-through-viridion-jv-1073159.html