USSM and Ionic Rare Earths plan $100M magnet recycling plant in Missouri

US Strategic Metals (USSM) has signed a joint venture term sheet with Ionic Rare Earths USA 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 partnership will expand the domestic critical mineral supply chain

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, comprising $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 of the venture will be split 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 europium, gadolinium, holmium, erbium, thulium, lutetium, and yttrium. 

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."

He continued, "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."

Choosing Missouri as a strategic site 

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.

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 to build a secure rare earths supply chain."