Wedoany.com Report-Oct. 23, Canadian rare earth and metals recycler Cyclic Materials announced on Wednesday an expansion of its partnership with magnetic materials developer VACUUMSCHMELZE (VAC). The companies have signed a 10-year exclusive agreement for recycling 100% of the magnet production by-products that will be produced at VAC’s new manufacturing facility in Sumter, South Carolina, scheduled to begin operations at the end of 2025.

Industrial facility for processing rare earth elements.

This agreement builds on the 2024 collaboration that focused on efficient recycling of critical materials used in high-performance permanent magnets. VAC specializes in neodymium-iron-boron (NdFeB) rare earth magnets, vital for applications in automotive, defense, industrial, and renewable energy sectors. The extended deal reinforces VAC’s dedication to circular practices, including the option to incorporate recycled mixed rare earth oxides (rMREOs) from Cyclic Materials back into its production.

Cyclic Materials, headquartered in Toronto, secured $57 million in its Series B equity funding round last year. The investment was supported by prominent backers, including Microsoft, Amazon, Hitachi Ventures, BMW iVentures, Jaguar Land Rover’s InMotion fund, and specialized investors such as Energy Impact Partners, ArcTern Ventures, and Fifth Wall.

In April, Cyclic Materials committed over $20 million to its inaugural commercial facility in Mesa, Arizona. This site will process end-of-life components, advancing the company’s efforts to create a sustainable supply chain for rare earth elements and other essential materials.

The partnership highlights a joint commitment to environmental responsibility and supply chain resilience. By recycling manufacturing waste, known as swarf, the initiative minimizes material loss and promotes resource reuse. This approach supports the development of closed-loop systems, where recovered materials directly feed into new production cycles.

“At Cyclic Materials, our mission is to recover critical materials from permanent magnets that can be put back into the magnet supply chain to reduce the reliance on traditional mining methods and overseas sources,” Cyclic Materials CEO Ahmad Ghahreman said in a news release.

“With the extension of our partnership with VAC, we’re collectively building more momentum towards our goal of building a North American supply chain,” Ghahreman said. “VAC brings not only a reliable source of raw materials for extraction but also decades of expertise in rare earth magnet technology.”

“The addition of this new contract for our South Carolina facility strengthens our ability to localize the recovery and reintegration of REEs back into our production,” VAC CEO Dr. Erik Eschen said.

“By continuing to leverage Cyclic Materials’ innovative recycling processes alongside our advanced magnet manufacturing, we are collectively ensuring a sustainable and high-purity feedstock for high-performance magnets to meet current and future industrial demand.”

This collaboration positions both companies as leaders in sustainable materials management. As demand for rare earth magnets grows with electrification and green technologies, such partnerships are essential for fostering innovation and efficiency. Cyclic Materials’ proprietary processes enable the recovery of high-purity elements from various sources, including electric vehicle motors and wind turbines, contributing to a more balanced global materials ecosystem.

The Sumter facility represents a key expansion for VAC in the United States, enhancing local production capabilities. Together, these efforts aim to meet industry needs while prioritizing ecological benefits and long-term resource security.