ION's Oklahoma funding application accepted for US rare earths facility

Our recycling Investment Iondrive (ASX: ION) just had its application for Oklahoma state incentives formally accepted.

Back in June, ION announced Oklahoma as its preferred destination to build its first commercial rare earth recycling module.

At the time, ION also announced local backing in the form of a letter of support from the Oklahoma Department of Commerce.

(for up to US$15M across three modules)

Today, ION confirmed it has formally entered into Oklahoma's qualification process for performance-based incentives totaling up to US$5.2M.

(source)

Here is a reminder of what the potential incentives include;

1. ~US$5.2M in potential State and local benefits for ION's first module
2. Up to US$15M+ across three modules
3. Performance-based support - payroll rebates, tax incentives and workforce training (so not upfront cash)

ION also confirmed it is pursuing the Governor's Quick Action Closing Fund plus other Federal, State and Tribal Nation funding.

(all of which are completely separate to today’s announcement)

The 10 reasons why we made ION our 2026 Small Cap Pick of the Year

1. ION doing magnet rare earths recycling in the USA - where there is the most urgency, money and attention.

China’s export restrictions on rare earths kick started the whole “US Critical Minerals” macro thematic.

Rare earths are receiving the most US government attention, the most capital from inside the US with the most urgency.

Which is why we think ION’s tech is being focused on the right critical mineral in the right jurisdiction at the right time.

2. ION is moving fast - and the pieces are in place.

ION, for its rare earth business in the US already has:

• A binding agreement with America's largest e-waste processor (Colt Recycling) to supply feedstock
• Independent lab tests showing ION's tech recovers rare earths - including heavy rare earths (93.5% dysprosium, 96.5% neodymium, 96.5% praseodymium)
• A letter of support for up to ~US$15M from the Oklahoma Department of Commerce for a recycling plant
• A first production run underway for 1.4 tonnes of rare earth oxide due within 150 days

3. Trump executive orders are positive for ION

The 20-July order forces US military contractors to prove "serious efforts" to source critical minerals domestically before they can import them - with a 1 January 2027 deadline on Chinese-origin materials in US defence systems.

(They either show they have tried or risk losing defence contracts)

Then there is the 30-July Presidential Determination that gives the Department of Commerce the power to ban exports of e-waste, black mass and magnets so they get recycled at home.

Two executive orders that will mean more capital going into potential domestic supply sources (like ION) and also more feedstock for a business like ION.

4. The G7 group of countries is also bullish critical minerals recycling

In June the G7 group of nations (basically all the western big dogs) met and made explicit commitments to “boost recycling of critical minerals”. (source)

Specifically calling out urgency around China dominated rare earths supply - rare earths being critical inputs in advanced technologies like AI, robotics and advanced weaponry.

One stated G7 aim was to make recycling capacity account for a “significant share” of annual consumption by 2030. (source)

Remember ION’s binding agreement in the US is with a company inside the Elemental Holding Group which has operations across 20+ countries across four continents.

5. Recycling can be a lot faster than mining

S&P Global's July 2026 study puts the average time from discovery to production at 16 years - and nearly 30 years for mines not yet operating, with permitting the main culprit. ION's modules bolt onto e-waste facilities that already exist, with US$11.9M of development capital per module - and its first rare earth oxide is due within 150 days. (S&P Global, Jul-2026)

6. US$243M NPV for each module - ION can build multiples of them around the US (and more globally)

One of ION’s 2,400tpa rare earths “modules” has the following economics:

• ~US$243M post-tax NPV,
• US$62M EBITDA
• US$122M revenue, and
• US$11.9M of development capital

That company (Colt Recycling) ION has a binding agreement with, runs FOUR US e-waste facilities.

AND is part of the Elemental Holding Group which has 50+ licensed scrap/e-waste collection and processing hubs across three continents. (source)

So those modular plants can be plugged into a global network pretty quickly (IF they work) - at US$243M NPV each…

7. A facility in Oklahoma, USA would be next door to $6BN USA Rare Earths which is explicitly looking for third party feedstock.

Oklahoma is where the US government just handed out a US$1.6BN funding deal to USA Rare Earth - which includes ~US$50M to expand a magnet manufacturing plant. (source)

USA Rare Earths has in the past explicitly mentioned “third party feedstock” would be used in the ramp up stages of its magnet plants.

Especially for heavy rare earths which are almost impossible to find in the US. (source)

Remember: ION can recover heavy rare earths from e-waste.

8. Critical minerals recycling and processing tech is getting funded - by governments AND private capital, right now.

We are seeing a lot of capital flow into recycling tech companies - especially in the US for companies able to recover critical minerals.

We have already seen the US government back:

1. Jan 2025: the Pentagon put US$5.1M into a recycler pulling rare earths from old electronics. (source)
2. June 2026: the Department Of Energy put US$134M for heavy rare earth recovery from e-waste and scrap. (source)
3. The Department Of War made a US$25M strategic investment in ReElement, and handed Energy Fuels a ~US$725M conditional loan for rare earths processing

And private capital get behind the following two deals this year alone:

1. Noveon Magnetics (recycled magnets) raise US$215M (Jan 26). 
2. Cyclic Materials (rare earth recycling) raise US$75M (Jan 26)

We think ION is in a position with its US rare earths business to attract this sort of funding.

9. ION’s tech works on other critical minerals too

ION has already shown it can recover:

• Silver from solar panels (85%+ recoveries at bench scale). 
• Battery metals from scrap batteries (black mass) - 89% lithium, 100% nickel, 98.6% cobalt, 98.4% manganese with a pilot plant due for commissioning in Q4-2026, AND
• Copper, gold and silver from circuit boards.

ION’s underlying Deep Eutectic Solvent tech has also been shown to recover other critical minerals like gallium, antimony and indium (plus many more).

We think that once ION commercialises its tech in one domain, it can expand into other critical minerals.

10. ION also has the “minerals processing” X factor

ION is also using its tech to solve extraction issues that miners have (getting a certain mineral out of a certain type of rock).

ION is currently focused on two markets for mineral processing:

1. Cobalt (also a critical mineral where the US is import dependent) - ION signed a binding term sheet with Latitude 66 to apply its technology on concentrates that would be produced from Latitude's project in the EU (Finland). (Source)
2. Nickel - ION is testing its tech on US sourced feedstock in the nickel industry. (Source)

Processing tech, when it works can be very valuable - like the company ION’s director Hugo Schumann was CFO of (Jetti Resources) which raised US$100M at a US$2.5BN valuation.

You can read up on the full note we did here: Our 2026 Small Cap Pick of the Year is Iondrive (ASX:ION)

What we want to see next from ION

Produce and qualify rare earth oxide in the US

We want to see ION complete its first production run and get its rare earth product qualified with potential downstream customers.

Milestones

✅ First ~5 tonnes of production underway.

🔄 1.4 tonnes of mixed rare earth oxide produced.

🔲 Product qualified by a customer (magnet maker / refiner / defence contractor)

🔲 First offtake or supply agreement

Non-dilutive funding OR downstream partnership for US rare earths facility

We want to see ION receive non-dilutive funding OR sign a commercialisation deal with a downstream partner.

Milestones

🔄 US federal grant / loan (USDA US$18M loan guarantee in progress - today)

🔄 Oklahoma state incentives (Quality Jobs application accepted, up to US$5.2M for Module 1)

🔲 Strategic or downstream investment

🔲 Commercial roll out agreement in the US

Final Investment Decision on US rare earth plant

We want to see ION reach FID on its Oklahoma rare earths plant.

Milestones

🔄 Front End Engineering Design (FEED) for the first module

🔲 Feedstock supply deal

🔲 Site selection, permitting and approvals

🔲 Final Investment Decision (FID)

🔲 Construction and commissioning

🔲 First commercial rare earth oxide production

Commission the battery recycling pilot plant

We want to see ION complete construction of its battery recycling plant and bring it into first production.

Milestones

🔄 Construction and fabrication

🔲 Wet commissioning (targeted for Q4 2026)

🔲 First results from the pilot plant