Here's why the Ionic Rare Earths (ASX:IXR) share price is up 190% YTD

The Ionic Rare Earths Ltd (ASX: IXR) share price has had a momentous year so far, after a run of good news concerning its Makuuta project.

Female ASX travel shares investor with surprised expression drinks a cup of tea while reading the newspaper at her desk

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ionic Rare Earths Ltd (ASX: IXR) share price has had a momentous year so far, it's currently up by 190% year to date. The rare earth producer has had a run of good news concerning its Makuuta project, a deposit of ionic clay rare earths.

Let's look closer at what's driving the Ionic share price.

The Makuuta project

In the first half of the 2020/21 financial year, the company's stake in the Makuutu project increased from 31% to 51%. The company has also advised that its stake may increase again, potentially reaching 60% in the future.

In January, Ionic Rare Earths announced Makuuta had received two additional exploration licences, increasing its exploration target by 50%. Finally, earlier this month, the company declared the mineral resource estimate of its Makuutu project had increased by 210%.

Rare earths are critical components of wind turbines and electric vehicles. Ionic Rare Earths believes the value of rare earths will go up as demand for clean energy increases.

The company states that ionic clay deposits operate at lower costs and have shorter development timelines than hard rock deposits.

Located in Uganda, Makuutu is one of the only large ionic clay rare earth element deposits outside of China. It is surrounded by infrastructure, including tarred roads, rail, power and water, and is accessible regardless of weather conditions.

Of the 315 million tonnes of rare earth minerals present at Makuutu, 26% are heavy rare earth oxides and 35% are critical rare earth oxides.

Ionic Rare Earths share price snapshot

The Ionic Rare Earths share price has rocketed higher since the beginning of the year. After commencing 2021 trading at 2 cents, the Ionic share price is currently sitting at 5.8 cents.

The company's shares have also increased by 480% over the last 12 months.

Ionic Rare Earths has a market capitalisation of around $178 million with approximately 3.1 billion shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

ASX 200 shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options
Broker Notes

Are Bendigo Bank shares a buy, hold or sell? Here's Macquarie's latest recommendation

Should I buy the dip on Bendigo Bank shares today?

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Rising share price chart.
Share Gainers

Why Canyon Resources, Nufarm, Paladin Energy, and WiseTech shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

These shares are starting the week in the red. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Gold

Guess which ASX gold stock just rocketed 167% on big news!

Investors are sending the ASX gold stock flying higher on Monday. Let’s find out why.

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Up 34% since April, ASX 300 healthcare stock lifts off again today on new milestone

The ASX 300 healthcare stock has been on a tear since hitting one-year lows in April.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »