Cyclic Materials agreement targets magnet-related scrap

Toronto-based Cyclic Materials, which focuses on recycling rare earth elements and other metals, has signed an agreement with Germany-based Vacuumschmelze GmbH & Co. KG (VAC) designed to ensure that byproducts containing critical materials used in high-performance permanent magnets will be recycled.

“This partnership advances efforts to create a local and sustainable supply chain for these magnets, which are critical components for electric vehicles (EVs), hybrid vehicles, wind turbines and modern electronics,” Cyclic says.

VAC, a magnetic materials and solutions developer, produces rare earth neodymium-iron-boron (NdFeB) magnets used in the automotive, defense, industrial and renewable energy sectors.

Recently, the company unveiled plans to build a magnet manufacturing plant for its e-VAC Magnetics subsidiary in the United States, gaining support from the U.S. Department of Defense for the project.

“Cyclic Materials' mission is to ensure all permanent magnets are recycled back into the supply chain, reducing the pressure to open new mines,” Cyclic Materials co-founder and CEO Ahmad Ghahreman says.

“Our partnership with VAC will bring us closer to achieving our goal. VAC will provide local sources of raw materials and decades of experience in rare earth magnet technology, making a Western supply chain for rare earth elements possible.”

The companies say they have agreed to recycle byproducts in North America through what Cyclic Materials calls its proprietary magnet recycling processes.

“This joint effort will produce recycled raw materials that have as much as 75 percent lower carbon footprint compared to mined raw materials, thereby allowing VAC’s customers to source environmentally friendly rare earth magnets with lower Scope 3 emissions,” Cyclic says.

The companies say manufacturers in the sectors they supply can then use these magnetic components to meet their net-zero production goals.

“We are proud to work with Cyclic Materials to advance circularity of the critical materials required for the energy transition,” says Erik Eschen, CEO of VAC. “Our recycling partnership will ensure that critical materials remain local and re-enter our supply chains, providing key industries with the high-performance permanent magnets required to meet consumer demand and achieve global sustainability goals.”

Cyclic Materials, which was founded in 2021, has a mission is to create a circular supply chain for rare earth elements and other materials critical to electrification.

In 2023, the company closed a $27 million funding round that included participation from BMW i Ventures and Energy Impact Partners (EIP), Fifth Wall and Bioindustrial Innovation Canada.