Ionic Rare Earths (ASX:IXR) has signed a non-binding memorandum of understanding with South Korean company DNA Link to collaborate in recycling rare earth permanent magnets and supplying magnet rare earth oxide, according to a Thursday filing with the Australian bourse.

Under the deal, the company will potentially recycle swarf from DNA Link's Korean plant back through Iconic's facilities in Belfast, UK, and also collaborate on magnet recycling and end-of-life magnet sourcing in the Korean market.

The company said it will cooperate with DNA Link to establish a US-based permanent magnet capacity including the supply of recycled magnet rare earth oxides.