ASX REE stocks are talk of the town during September quarter
Proactive Investors
Published Nov 13, 2023 12:34
Updated Nov 13, 2023 13:30
Rare Earth Elements (REEs), comprising 15 lanthanides plus scandium and yttrium, are increasingly pivotal in a variety of critical applications, including smartphones, electric vehicles, wind turbines and medical treatments.
These 17 elements from the periodic table play an essential role in modern technology and in achieving decarbonisation objectives.
The global supply chain of REEs is highly concentrated, creating economic vulnerabilities and geopolitical concerns.
This is partly due to the potential use of these minerals as 'economic weapons'.
The complexity of the supply chain, coupled with environmental considerations, makes REEs a focal point in materials science, industry, and international relations.
Australia's involvement in the global market
In response to these challenges, Australia has launched its Critical Minerals Strategy, aiming to capitalise on the nation's significant critical mineral resources.
After extensive public consultation, six focus areas were identified to meet the Australian Government’s objectives in the critical minerals sector.
The global demand for REEs is forecasted to reach 315,000 tonnes by 2030, driven by the transition to clean energy technologies, such as electric vehicles, wind, and solar power.
As the world's fourth-largest REE producer, Australia has seen its output grow from 1,995 tonnes in 2011 to an annual capacity of 24,000 tonnes.
This growth underscores Australia's role in meeting the burgeoning global demand.
Reducing dependence on China
Recognising the need to diminish reliance on China, particularly in downstream capacities like manufacturing permanent magnets and end-products, Australia is expanding its part in the supply chain.
The Australian Government has committed $30 million as part of a broader A$240 million investment in the critical minerals sector.
This investment aims to reduce dependence on China and is a testament to the strategic importance of the REE industry for Australia's economic and technological future.
A few players that generated strong Q3 news flow:
Ionic Rare Earths
***Ionic Rare Earths Ltd (ASX:ASX:IXR, OTC:IXRRF)'s September quarter highlights its development activities at the Makuutu Rare Earths Project in Uganda and its magnet recycling subsidiary, Ionic Technologies International Limited in the UK
The quarter culminated in the achievement of several significant milestones across both Makuutu and Ionic Technologies, accelerating IonicRE to fulfil its strategic objective to support Western economies in securing critical rare elements of magnet and heavy rare earth oxides for the new economy.
IonicRE’s innovative technology and patented processes will accelerate the mining, refining, and recycling of these elements critical for energy transition, advanced manufacturing, and defence programs.
Engagement continues with government stakeholders and potential strategic partners interested in the unique appeal of the Makuutu basket of magnet and heavy rare earths as well as separated magnet rare earth oxides (REO) from Ionic Technologies to feed new emerging supply chains.
Meanwhile, Ionic Tech now has a ‘first mover’ advantage in the industrial elemental extraction of separated REOs from spent magnets and waste, enabling near-term magnet REO production capability to satisfy growing demand from the energy transition, advanced manufacturing, and defence.
Makuutu Rare Earths Project
During the quarter, the company received strong support from Uganda’s Government Minister for Energy and Mineral Development for the licensing and development of Makuutu.
Ionic appointed DRA Global to review Makuutu’s definitive feasibility study (DFS), examine opportunities for further cost efficiencies, time savings and scale, and advise on the Makuutu Demonstration Plant program value optimisation to support the Final Investment Decision (FID).
At the field, phase 5 rotary air blast (RAB) tranche 1 and 2 assays on exploration licence (EL) 00147, EL00257, and RL00007 confirmed clay-hosted rare earth intersections in 69 of 76 drill holes.
Diamond infill drilling continued at Retention Licence (RL) 00007, aiming to increase resource classification to Indicated Resource, completed post-end of the quarter.
Ionic Technologies UK
Ionic Technologies has secured landmark partnership agreements with Ford Technologies Limited, Less Common Metals Limited (LCM), and the British Geological Survey (BGS) to create a UK rare earth supply chain from recycled magnets.
Ford and LCM partnership is via a £1 million UK government grant, with Ionic Technologies announced as the major beneficiary and lead collaborator in the focus on delivering the UK’s first domestic sourcing of separated high purity magnet rare earth oxides (REOs).
An additional £1 million grant funding was awarded to Ionic Technologies, in collaboration with the British Geological Survey, for a feasibility study into the construction and supply side dynamics of a magnet rare earth recycling plant in the UK.
The funding is part of the UK Government’s Circular Critical Materials Supply Chains (CLIMATES) program.
The move is an important step towards sovereignty for the UK, in developing market-leading technology and building a supportive pathway for Ionic Technologies to commercialise the first magnet recycling facility in Belfast to feed the escalating supply chain appetite for circular economy magnet REOs.***
IXR Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
(20min delay)