An £85m magnet recycling centre in Belfast potentially employing 70 people is now a step closer following a feasibility study, a company has said.

Australian firm Ionic Rare Earths said the “compelling” study showed there was strong potential for a “profitable” rare earth oxide (REO) manufacturing centre in the city.

It said it had identified a commercial site on Queen’s Island at Belfast Harbour for its manufacturing centre.

Tim Harrison, IonicRE’s managing director, said: “The completion of this feasibility study is a major milestone in our company’s development of a Western rare earths supply chain, initially centred on Belfast, UK.

“I congratulate our team at Ionic Technologies and all our partners for these outstanding results.

“The study confirms that the commercial case for magnet recycling is compelling, complementing the clear environmental and sustainability benefits, as well as the imminent need for rare earth element production outside of China.”

The company said it’s in discussions with investors and debt financiers to secure the investment necessary for the site, which would employ 70 people.

Ionic Technologies has received UK Government grant funding, with up to £5m of funding and commitments received so far. it is applying for a capital grant from the UK Government via the Automotive Transformation Fund.

And it’s targeting additional government-backed financing for projects with the potential to facilitate the UK’s energy transition and support investment in Northern Ireland.

Brett Lynch, IonicRE executive chairman, said: “Our Belfast plant is the first producer of recycled separated magnet REOs in the Western world, a huge achievement for all stakeholders.

“We are now moving rapidly to commercialise rare earth recycling, with planned commercial-scale production within just two years, offering investors direct exposure to the growth of a Western supply chain.”

It estimates the cost of the site at £84.96m, and would include a technical centre where it would explore REE separate and magnet recycling. Ionic also invests in R&D and has two new PhD programmes at Queen’s University Belfast.

Rare earth element recycling can be deployed in energy transition, advanced manufacturing and defence.

The company says construction of the site would be finished by late 2026, delivering to customers from early 2027.