Cyclic Materials Secures USD $75M Series C Funding to Scale Rare Earths Recycling

Cyclic Materials has secured $75 million in an oversubscribed Series C equity round, giving the rare earths recycler fresh capital to accelerate commercial deployment in the United States and Europe as governments and manufacturers push to reduce reliance on mined supply chains, according to the company reporting.

Rare earth elements are critical inputs for permanent magnets used in electric vehicles, wind turbines, data centers, defense systems and advanced robotics. Western supply remains heavily dependent on China, particularly for heavy rare earths, which are scarce in most mining deposits outside Asia. Analysts say recycling magnet-containing scrap and manufacturing waste has emerged as one of the fastest routes to near-term supply, bypassing long mine development timelines and permitting risks.

Cyclic Materials, founded in Canada, focuses on recovering rare earths from end-of-life products and magnet production residues using a combination of physical separation and hydrometallurgical processing. Industry data show demand for magnet rare earths rising steadily with global electrification and AI infrastructure buildout, while recycling rates remain low compared with other critical metals. Previous policy efforts in the US, Canada and Europe have emphasized domestic processing and circular supply chains, but commercial-scale capacity has lagged behind targets.

The latest funding round was led by accounts advised by T. Rowe Price Associates, with continued backing from existing investors and new participation from the Canada Growth Fund. The raise lifts Cyclic Materials’ total equity funding to more than $162 million. The company said the capital will be used to expand recycling infrastructure in the US, scale operations in Europe and deepen research and development activities in Canada.

Company executives said part of the funding will support its recently established Center of Excellence in Kingston, Ontario, where it is developing proprietary technologies and intellectual property tied to rare earth recovery and magnet supply chain integration. Observers note that vertical integration is increasingly viewed as a competitive advantage as manufacturers seek long-term, low-risk access to critical materials.

Cyclic Materials claims its recycling process can cut carbon emissions by more than 60% compared with conventional mining, reduce water use to a fraction of mining requirements and achieve recovery rates above 98%. Industry groups argue that such performance metrics, combined with faster deployment timelines, make recycling particularly attractive for heavy rare earths, which are essential for high-performance magnets but face the tightest supply constraints.

The company has already begun translating earlier funding into physical assets. It launched its first US “Spoke” facility in Mesa, Arizona, in 2025 and is developing a complementary “Hub” operation in Kingston. It has also secured long-term feedstock and offtake relationships, including a decade-long exclusive agreement to recycle magnet manufacturing by-products from VACUUMSCHMELZE’s South Carolina plant, and partnerships with industrial and mobility companies supplying end-of-life materials.

Investors said the round reflects growing confidence that rare earths recycling can move beyond pilot scale. Representatives from T. Rowe Price highlighted the commercial viability of recovering high-value materials from complex waste streams, while Canada Growth Fund officials said the investment aligns with national goals to strengthen domestic critical minerals processing.

Analysts say the pace at which Cyclic Materials can replicate its facilities and secure consistent feedstock will determine how quickly recycling can meaningfully offset mined supply. With governments tightening supply chain security requirements and demand from AI and electrification continuing to climb, recycled rare earths are expected to play a larger role in Western markets over the next decade.

Source: Cyclic Materials

SUNSHINE Spotlight: A $75 million funding round positions Cyclic Materials to expand rare earths recycling capacity as Western industries seek faster, lower-risk alternatives to mined supply.