Ionic Rare Earths (ASX:IXR) initiated a strategic review of its Makuutu Heavy rare earths project in Uganda through its 60%-owned unit Rwenzori Rare Metals, amid strong inbound interest and a global Western search for new and independent sources of medium and heavy rare earths supply, according to a Friday Australian bourse filing.

The company said the review will consider potential strategic, structural and funding alternatives for the project, with the assessment driven by strong interest from US and allied stakeholders given rising Western demand for secure, traceable sources of heavy rare earths.

The current geopolitical environment is providing a material increase in demand for US and allied sources of critical materials, with Chinese export restrictions for heavy rare earths expected to resume in November and US measures coming into effect from January 2027, the filing added.