Iondrive (ASX: ION) has completed a Phase 1 techno-economic evaluation for a 2,000-tonne-per-annum modular plant designed to recover rare earth elements (REEs) from end-of-life permanent magnets, with results indicating strong commercial potential for its IONSolv process.
The study produced a post-tax net present value of US$7 million, a 46% internal rate of return, and a 2.6-year payback for a single module, supporting a scalable rollout model targeting US magnet-waste hubs.
The company is looking to position IONSolv as a key platform technology for recovering strategic metals from waste streams as global demand for diversified critical-minerals supply continues to grow.
Strong Economics for Urban-Mined Rare Earths
The Phase 1 assessment incorporated engineering data from ProProcess Engineering and economic modelling from ModelAnswer Commercial Analytics that reflected reagent consumption, solvent recovery cycles, mechanical equipment sizing ,and updated labour and energy inputs.
The study benchmarked product pricing assumptions against November 2025 separated oxide prices, adjusted using an 80% bundle discount consistent with indicative industry norms.
Financial outcomes for a single module include initial capital expenditure of about US$4.6m, sustaining capital of US$2.3m over the project life, and operating costs of roughly US$44.3m.
A typical module is expected to produce an average of 115 tonnes of mixed rare-earth oxides annually over a ten-year operating period, with revenue dominated by neodymium, praseodymium, and dysprosium.
Iondrive said the modular approach enables rapid deployment at multiple locations, reducing logistics costs and capturing value at or near waste-generation sites.
Technical Basis for Commercialisation
Feedstock used in the evaluation contained 19.5% neodymium, 5.5% praseodymium, and 2.7% dysprosium, with modelled recoveries of 94.5%, 91.1% and 32.1% respectively.
The IONSolv process operates with high solvent-reuse potential at low temperatures, reducing reliance on aggressive acids compared with conventional hydrometallurgical or pyrometallurgical methods.
The process offers a closed-loop recovery pathway that can be applied to a range of urban-mining opportunities beyond magnet feedstocks.
“While this initial techno-economic evaluation reflects our best current engineering assumptions, we’ve already begun Phase 2 laboratory validation to test and refine key parameters,” chief executive officer Dr Ebbe Dommisse said.
“This work will feed directly into plant design and ensure a robust, scalable basis for commercial deployment across multiple US sites.”
Phase 2 Validation Under Way
The company has commenced a 16-week Phase 2 laboratory program to independently validate reagent-use assumptions, solvent-recovery rates, and overall process efficiency.
The work will generate controlled data to refine engineering inputs and update the economic model before ProProcess undertakes the next round of design optimisation toward a project feasibility study.
Iondrive expects results from Phase 2 in early Q2 2026, after which it will release an updated set of technical and economic metrics.
The company said the positive Phase 1 results support advancement of its modular rare earth recycling strategy in the US, complementing progress in battery and solar-panel recycling applications.
