Cyclic Materials, a top recycling company, wants to create a circular supply chain. This chain will focus on rare earth elements (REEs) and other essential materials. They have teamed up with VACUUMSCHMELZE (VAC). VAC is a global leader in magnetic materials and high-performance magnet solutions.
Cyclic Materials will recycle all the magnet production byproducts, known as swarf, from VAC’s Sumter, South Carolina facility. This 10-year exclusive agreement kicks in when the facility opens in late 2025. It’s the next step after an agreement the companies made in 2024. That deal opened the door for recycling key materials in neodymium-iron-boron (NdFeB) magnets.
“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,” said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. “With the extension of our partnership with VAC, we’re collectively building more momentum towards our goal of building a North American supply chain. VAC brings not only a reliable source of raw materials for extraction but also decades of expertise in rare earth magnet technology. Together we are making the circular economy a reality.”
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Through this agreement, VAC reinforces its commitment to sustainability, with the option to reintegrate recycled Mixed Rare Earth Oxides (rMREOs) from Cyclic Materials into its production lines. VAC’s NdFeB magnets are critical components for applications across automotive, defense, industrial, and renewable energy sectors.
“We are pleased to expand our partnership with Cyclic Materials to further support the circular economy for critical materials essential to the energy transition,” said Dr. Erik Eschen, CEO of VACUUMSCHMELZE. “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. 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.”
Cyclic Materials raised $57 million in its Series B equity round last year. This funding came from global leaders, including Microsoft, Amazon, and Hitachi Ventures. It also included BMW i Ventures and Jaguar Land Rover’s InMotion fund. Specialized investors, like Energy Impact Partners, ArcTern Ventures, and Fifth Wall, also joined in. Cyclic Materials is a vital partner for firms wanting sustainable and circular supply chain solutions. This is especially true in the automotive and data center sectors.