Rare Earths and Resilience: Insights from Ionic Rare Earths' CEO

Research evidence excerpt

Rare Earths and Resilience: Insights from Ionic Rare Earths' CEO

Barclays | Replay: Expert Access

4) Pricing is decoupling from China

While pricing indices for rare earths are driven by China, ex-China rare earth pricing is already

emerging, although liquidity and transparency remains limited. This is because pricing outside

China is currently formed largely through private transactions and contractual arrangements

rather than transparent public benchmarks.

While mechanisms such as floor pricing can help underpin new capacity, they are often

accompanied by ceilings that limit exposure to upside. As such, Tim noted that Ionic Rare Earths

is being selective in the opportunities it pursues, favouring structures that maintain economic

flexibility that can derisk downside whilst providing opportunities to participate in upside.

5) Substitution potential is limited

Substitution of rare earth magnets with other materials has been a growing topic of

conversation with investors, yet technology barriers remain. In particular, in high-performance

applications such as EV drivetrains, robotics, drones and data centres, rare earth magnets are

critical for efficiency, and substitutes with the same efficacy are lacking. In lower-performance

or cost-driven applications, substitution may occur over time but in Tim's view, demand in high-

end applications remains resilient long-term.

6) Ionic’s competitive positioning is built around recycling, heavy rare

earths and geographic flexibility

Tim emphasised that Ionic’s competitive advantage lies in its focus on heavy rare earth

feedstocks and recycling-led supply, which he described as aligned with the most acute

geopolitical and supply-chain bottlenecks. Recycling allows Ionic to access material faster, at