Ionic Rare Earths (ASX:IXR) - European Recycling and African Production?

Interview with Tim Harrison, Managing Director of Ionic Rare EarthsOur previous interview: https://www.cruxinvestor.com/posts/ionic-rare-earths-asxixr-building-europes-rare-earths-supply-chain-4476Recording date: 8th February 2024Rare earth elements (REEs) form the hidden backbone energising the global transition to electric mobility and clean power. Their unique magnetic, catalytic, and photonics properties impart performance and efficiency gains that silicon and copper simply cannot match. Yet, even as rapid electrification escalates demand, these obscure metals face a brewing supply crisis that jeopardizes nations’ net zero emissions timetables absent concerted action to develop alternative sources.Australian firm Ionic Rare Earths seeks to break China’s stranglehold on rare earths production through an innovative two-pronged strategy focused firstly on recycling magnets from electronic waste to recover vital rare earth oxides and secondly on developing its major Makuutu rare earths deposit in Uganda. Executing this plan can establish Ionic as the leading independent full-cycle rare earths operator as Western countries scramble to shore up their manufacturing and defence supply chains.Importantly, Ionic brings credible technological expertise and industry partnerships that validate its capabilities. The company already operates a demonstration facility showcasing its recycling processes. Moreover, collaborations with Volkswagen-owned Hypromag and specialist manufacturer Less Common Metals position Ionic to rapidly commercialize operations. Attractive government incentives and policies driving rare earths recycling in Europe and abroad create strong tailwinds.Nevertheless, successfully scaling production from primary deposits likely constitutes the bigger long-term economic opportunity. Ionic’s Makuutu project in Uganda offers district-scale resource potential plus inexpensive extraction from mineralization occurring near surface in soft clay. Once in full swing, Makuutu can deliver the bulk tonnages of neodymium, praseodymium, and dysprosium essential to energize mass EV adoption and wind power buildouts.Shares of Ionic Rare Earths trade at just a fraction of projected net asset value, embedding intriguing upside as executes its growth roadmap in the years ahead. The window to capitalize on the impending rare earths shortage continues narrowing. Astute investors looking for leverage upon this critical secular trend in clean energy should take note.—View Ionic Rare Earth's company profile: https://www.cruxinvestor.com/companies/ionic-rare-earths-ltdSign up for Crux Investor: https://cruxinvestor.com

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