Iondrive plugs into American eWaste stream with rare earths deal

Adelaide based Iondrive (ASX ION) has planted its flag in the United States, signing a binding agreement with Colt Recycling to trial its much touted deep eutectic solvent technology on electronic waste.

Colt, which processes about 40 million pounds of discarded electronics a year across several major facilities, will supply mixed feedstock to Iondrive for evaluation. The aim is to see whether the process can efficiently extract not only gold, copper and palladium but the elusive rare earth elements that are usually destined for landfill or low value smelting.

The 21 month agreement begins with Colt supplying small quantities of material for testing, with scope to expand to commercial scale if the results prove successful. The framework also opens the door to co locating solvent processing units directly at Colt’s sites, embedding Iondrive’s technology within the recycling chain itself.

Rare earths are at the centre of a geopolitical tug of war, with more than 90 per cent of refining still under Chinese control. Recent supply disruptions have highlighted the fragility of the chain, especially for industries that depend on magnets and specialty alloys used in wind turbines, electric vehicles, defence hardware and smartphones. Yet while printed circuit boards and other eWaste contain meaningful concentrations of these critical elements, recovering them economically has proven elusive.

Iondrive’s chief executive Dr Ebbe Dommisse is banking on its solvent chemistry to change the equation. “This agreement with Colt provides us with the opportunity to demonstrate that our technology can do what current recycling processes cannot,” he said. “If successful, it would mark an important step toward bringing these critical materials back into circulation in a sustainable way, while positioning Iondrive for a future North American footprint”.

Colt’s boss Jim Maher struck a similar chord, noting that rare earths are embedded in much of the material his company processes but are almost never recovered. “By returning them to supply chains, we have the potential to support industries that depend on them while also enhancing the sustainability of our operations” he said.

The numbers speak to the scale of the opportunity. Globally, electronic waste is estimated at around US$91 billion annually, yet less than a quarter is recycled through formal channels. Circuit boards alone can carry up to US$36,000 worth of recoverable metals per tonne, making them one of the richest waste streams on the planet.

Iondrive’s solvent method is pitched as an environmentally friendly alternative to traditional smelting and acid based approaches. It works at lower temperatures, avoids aggressive chemicals, and can be tuned to selectively extract metals. Importantly, it is designed as a closed loop process with minimal solvent loss, positioning it as a potentially scalable solution.

For Iondrive, the Colt agreement is both a test and a stepping stone. Success could establish a North American beachhead and demonstrate that its solvent process can unlock value from one of the most challenging recycling frontiers. For investors, the news is less about immediate revenues and more about positioning — placing the company in the slipstream of two megatrends at once: the race to secure rare earths and the circular economy drive to extract more from waste.

As with all pilot agreements, much rides on the chemistry performing as promised. But if the Adelaide team can deliver what others have failed to achieve, this deal could prove to be the missing link between a clever lab process and a commercial scale recycling reality.