USSM to contribute $95 million and host magnet recycling facility at its 1,750-acre permitted Missouri site; Ionic Rare Earths to license its magnet recycling technology and lead technical operations
ST. LOUIS, Sept. 3, 2026 /PRNewswire/ -- US Strategic Metals (USSM) today announced that it has signed a joint venture term sheet with Ionic Rare Earths USA, a wholly owned subsidiary of Ionic Rare Earths Limited (ASX: IXR), to build rare earth permanent magnet recycling capacity at USSM's fully permitted processing site near Fredericktown, Missouri.
The term sheet supersedes the memorandum of understanding the two companies signed at the Australian Embassy in Washington, D.C., in November 2025. The parties have agreed on a non-binding basis to form a 50-50 joint venture to develop one or more magnet recycling facilities as part of an integrated critical minerals campus on USSM's 1,750-acre site.
The parties intend to fund the JV with $100 million for construction of the initial neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) recycling facilities, comprised of $95 million in funding from USSM alongside a $5 million equity contribution split equally between the two partners. The JV is intended to fund any additional capital required. The initial $5 million would complete Front End Engineering Design and accelerate demonstration-scale magnet recycling.
Ownership is 50-50. A five-member board, with three managers appointed by USSM and two by Ionic USA, would manage day-to-day operations. Ionic USA is intended to chair the Technical Operations Committee and hold primary responsibility for technical, operational and commercial matters, including feedstock procurement. Ionic Technologies, Ionic Rare Earths' Belfast subsidiary, is proposed to contribute a non-exclusive license covering magnets, magnet scrap, and other heavy rare earth bearing compounds.
The facilities would process recycled NdFeB and SmCo magnets and magnet scrap. The JV also intends to evaluate recovery of additional heavy rare earths, including Eu, Gd, Ho, Er, Tm, Lu, and Y.
Stacy W. Hastie, Co-Founder and Chief Executive Officer of USSM, said, "USSM is focused on being a leader in the establishment of supply chains for critical minerals and heavy rare earths and this agreement is a major step toward achieving our vision. IonicRE has proven the capability of its rare earth permanent magnet recycling technology; now is the time to apply this on an industrial scale. We have the necessary, fully permitted site in Missouri to make this a reality.
The United States will not be left behind in the race to build the industries key to national security and our economic future. We look forward to moving this JV forward as quickly as possible, working with the U.S. Government, IonicRE, and other stakeholders."
Why Fredericktown
USSM's Missouri site is fully permitted and sits on 1,750 acres in the Southeast Missouri mining district. The company is building capacity there to produce alloy-grade cobalt, antimony sulfide, nickel metal, lithium carbonate, copper cathode and rare earth elements. Adding magnet recycling places separated rare earth oxide production inside an operational multi-metallic campus rather than on a greenfield site.
The proposed JV also aligns with the United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, signed on October 21, 2025, by President Donald J. Trump and Prime Minister Anthony Albanese.
Brett Lynch, Executive Chairman of Ionic Rare Earths, said, "The United States is the world's biggest economy with the unmatched financial firepower and industrial know-how to drive development of this key technology. We are delighted to upgrade our previously announced memorandum of understanding with USSM with the intention of building our first U.S. facility in Missouri in building a secure rare earths supply chain."
Next steps
The companies are progressing definitive agreements, which they intend to complete by the end of 2026. The proposed JV remains conditional on entering into those definitive agreements, each party making its capital contributions, and a range of documentation and other matters being agreed between the parties. There is no certainty that the matters contemplated by the term sheet will take effect.
About US Strategic Metals
USSM is a vertically integrated critical minerals platform with the objective of becoming the first major near-term domestic producer of critical minerals in the United States. The company's processing site in Missouri will produce critical materials including alloy-grade cobalt, antimony sulfide, nickel metal, lithium carbonate, copper cathode and rare earth elements.
USSM's capacity to process complex polymetallic sulfides using well-known methods combined with in-house, novel technology positions it as a market leader in reliable, ethically sourced and environmentally responsible strategic metals for U.S. and global markets. Anchored by its team of experienced professionals and substantial domestic resources, USSM is building capacity to meet the needs of the defense and advanced technology industries.
More information: www.usstrategicmetals.com
About Ionic Rare Earths
Ionic Rare Earths Limited (ASX: IXR) is an emerging miner, refiner and recycler of magnet and heavy rare earths. Its wholly owned UK subsidiary, Ionic Technologies International Limited, has developed processes for separating and recovering rare earth elements from ore concentrates and recycled permanent magnets, targeting separated products above 99.9% rare earth oxide purity. IonicRE holds 60% of the Makuutu Heavy Rare Earths Project in Uganda and has a 50/50 refinery and magnet recycling joint venture with Viridis Mining and Minerals Limited (ASX: VMM) in Brazil.
More information: www.ionicre.com
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SOURCE US Strategic Metals
