Key Highlights

  • Iondrive commissioned a five-tonne rare earth recycling qualification campaign in August 2026, targeting production of approximately 1.4 tonnes of mixed rare earth oxide.
  • The campaign will process end-of-life permanent magnet feedstock containing approximately 30% rare earth oxide, with a targeted recovery of around 95%.
  • Independent laboratory testing in June 2026 reported single-pass leaching recoveries exceeding 96% for neodymium and praseodymium.
  • Iondrive reported AUD 5.129 million in cash at 30 September 2026, with further engineering, product qualification and financing activities planned.

Iondrive Limited (ASX:ION) is an Australian-listed technology company developing metal recovery and recycling processes for critical minerals. Its IONSolv technology uses deep eutectic solvents to recover valuable materials from end-of-life permanent magnets and other feedstocks. Iondrive Limited (ASX:ION) shares closed at AUD 0.085 on 10 November 2026. The company's five-tonne qualification campaign represents a step towards producing sufficient recycled rare earth material for Downstream customer testing.

Five-Tonne Campaign Targets Customer Qualification

On 3 August 2026, Iondrive Limited (ASX:ION) announced arrangements to undertake a qualification campaign involving approximately five tonnes of end-of-life magnet feedstock.

The material is expected to contain approximately 30% rare earth oxide.

The programme targets production of around 1.4 tonnes of mixed rare earth oxide during the fourth quarter of calendar 2026.

The processing flowsheet has a targeted Recovery Rate of approximately 95%, although actual campaign performance remains to be established.

The campaign is intended to generate material for independent analysis and downstream customer qualification.

Producing representative quantities will help assess whether the recycled material meets potential customers' technical requirements.

However, qualification testing does not constitute a commercial sales agreement or demonstrate sustained industrial-scale production.

IONSolv Technology and Recovery Performance

IONSolv is designed to recover rare earth elements from permanent magnets using deep eutectic solvent-based processing.

In June 2026, Iondrive reported independent laboratory results from commercially sourced United States magnet feedstock.

Single-pass leaching recoveries were approximately 96.5% for neodymium, between 96.5% and 97.3% for praseodymium, and between 93.5% and 93.6% for dysprosium.

These results relate specifically to the leaching stage and do not represent overall recovery into a finished saleable product.

Further testing is necessary to assess processing efficiency, product purity, reagent consumption and performance under larger operating conditions.

The qualification campaign is therefore an intermediate technical milestone rather than confirmation of commercial viability.

United States Development and Engineering Activities

During 2026, Iondrive continued evaluating potential United States operations for rare earth recycling.

In September, the company released an updated evaluation of a proposed processing module with annual feedstock capacity of approximately 2,400 tonnes.

The assessment estimated a post-tax net present value of USD 243 million under its modelling assumptions.

This figure is a preliminary economic estimate rather than an established project valuation or committed financial return.

Iondrive has also progressed incentive and financing applications associated with potential operations in Oklahoma.

Further engineering work, site selection and financing arrangements remain necessary before a commercial development decision.

Financial Position and Funding Requirements

Iondrive reported cash and cash equivalents of approximately AUD 5.129 million at 30 September 2026.

Its quarterly Cash Flow report indicated estimated funding availability of approximately 2.3 quarters.

The company subsequently received an additional Research and Development tax incentive payment of approximately AUD 1.026 million in November 2026.

For FY2026, Iondrive reported a net loss after tax of approximately AUD 7.02 million.

The company's annual financial reporting also identified material uncertainty relating to its ability to continue as a going concern.

Future development expenditure will depend on technical progress, funding availability and the scale of proposed processing operations.

Commercialisation Risks and Upcoming Milestones

The principal technical uncertainty concerns whether IONSolv can achieve consistent recovery, product quality and operating costs at commercial scale.

Although laboratory results provide information about extraction performance, sustained industrial-scale operation has not yet been demonstrated.

Potential project development also depends on financing, feedstock arrangements, customer qualification and site-related approvals.

The immediate milestone is completion of the five-tonne campaign and independent assessment of the resulting mixed rare earth oxide.

Further engineering design and financing activities will determine the next stages of development.

Key Insights

Iondrive Limited (ASX:ION) is progressing from laboratory recovery testing towards producing larger quantities of recycled rare earth material for customer qualification.

The five-tonne campaign will provide additional information about processing performance and product characteristics.

Commercialisation will depend on successful qualification, technical scale-up, financing and future customer arrangements.