US magnet recycling plant plans could establish a new domestic source of high-purity rare earth materials in Missouri. The $100 million project will develop magnet recycling facilities near Fredericktown, Missouri. It will target permanent magnets and manufacturing scrap while supporting a wider critical minerals processing campus.
The proposed development represents a major step toward building a domestic circular supply chain for rare earth materials. It also responds to growing concerns over concentrated global supply chains for critical minerals.
US Strategic Metals and Ionic Rare Earths USA signed a non-binding joint venture term sheet on September 3, 2026. The proposed venture will develop the facilities on US Strategic Metals’ permitted Missouri processing site.
US Strategic Metals will provide $95 million toward the initial construction program. Meanwhile, both partners will contribute a combined $5 million in equity.
The initial funding will also complete front-end engineering design and accelerate demonstration-scale recycling. However, the partners have not announced a construction start date or operating schedule.
US Magnet Recycling Plant to process permanent magnets
The US magnet recycling plant will initially process neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) magnets. It will also accept magnet manufacturing scrap from these materials.
Furthermore, the development will use Ionic Technologies’ patented magnet recycling technology. Ionic Technologies, a subsidiary of Ionic Rare Earths, will provide the technology under a non-exclusive license.
The technology aims to recover valuable rare earth elements from end-of-life magnets and production waste. The process can support production of separated rare earth oxides for downstream applications.
Ionic Technologies already operates a demonstration facility in Belfast, Northern Ireland. The facility has demonstrated rare earth oxide production from recycled magnet feedstock.
The Missouri development will therefore transfer demonstrated recycling technology into a US industrial setting. This approach could reduce reliance on greenfield mineral extraction for some rare earth requirements.
US Magnet Recycling Plant targets integrated critical minerals campus
The US magnet recycling plant will form part of an integrated critical minerals campus rather than operate as an isolated greenfield development. US Strategic Metals owns the permitted processing site near Fredericktown.
The companies describe the site as covering 1,750 acres. However, earlier company materials have described the broader site as 1,800 acres.
The proposed joint venture will operate under equal ownership between the two partners. A five-member board will include three US Strategic Metals appointees and two Ionic USA appointees.
Ionic USA will chair the Technical Operations Committee. It will also oversee technical, operational and commercial responsibilities, including feedstock procurement.
Meanwhile, US Strategic Metals will host the recycling facilities and provide most initial project funding. This structure combines an existing permitted site with specialized recycling technology.
The project also aligns with the US-Australia framework for securing critical minerals and rare earth supplies. Both countries signed that framework in October 2025.
However, the project remains subject to several conditions before construction can proceed. The partners intend to complete definitive agreements by the end of 2026.
The companies have not disclosed the facility’s annual processing capacity or expected production volumes. They also have not announced the construction contractor or final engineering contractor.
Therefore, the immediate priority involves completing engineering, finalizing commercial arrangements and establishing the joint venture. Once completed, the project could provide additional domestic capacity for recovering strategic rare earth materials.
The plant also joins a broader wave of American critical-minerals construction. For example, the Thacker Pass Lithium Mine in Nevada is advancing its own major processing infrastructure. That project combines mine development with lithium processing, while the Missouri facility will focus on recovering rare earths from permanent magnets.
Project Fact Sheet
Project: US Magnet Recycling Plant
Type: Rare earth permanent magnet recycling facility
Value: $100 million
Location: Near Fredericktown, Missouri, United States
Site: US Strategic Metals’ permitted critical minerals processing site
Site area: Approximately 1,750 acres according to the latest USSM announcement
Development status: Planned
Agreement status: Non-binding joint venture term sheet
Ownership: 50-50 joint venture
Initial construction funding: $95 million from US Strategic Metals
Initial equity contribution: $5 million split equally between partners
Target materials: Rare earth elements contained in permanent magnets
Initial feedstock: NdFeB magnets, SmCo magnets and manufacturing scrap
Technology: Ionic Technologies patented magnet recycling process
Engineering stage: Front-end engineering design
Demonstration program: Planned acceleration of demonstration-scale recycling
Definitive agreements: Targeted for completion by the end of 2026
Strategic objective: Strengthen US domestic rare earth recycling and critical minerals supply
Project Team
Developer: US Strategic Metals
Joint venture partner: Ionic Rare Earths USA
Technology provider: Ionic Technologies
Site owner: US Strategic Metals
Funding partner: US Strategic Metals
Technical operations: Ionic Rare Earths USA
Commercial operations: Ionic Rare Earths USA
Feedstock procurement: Ionic Rare Earths USA
Engineering development: Proposed US Strategic Metals-Ionic Rare Earths joint venture
Joint venture governance: Five-member board
USSM board representation: Three appointed managers
Ionic board representation: Two appointed managers
Technical Operations Committee: Ionic Rare Earths USA
Technology licensing: Ionic Technologies
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