Cyclic Materials and VACUUMSCHMELZE Strengthen U.S. Rare Earth Magnet Recycling Partnership

According to a joint statement from Cyclic Materials and VACUUMSCHMELZE (VAC), the two companies are expanding their strategic collaboration to recycle rare earth magnet manufacturing waste in the United States. It is understood that the new 10-year agreement will enable Cyclic Materials to process all magnet production byproducts from VAC’s upcoming facility in Sumter, South Carolina, which is expected to begin operations by the end of 2025.

As reported by both companies, the extended partnership represents a major step toward establishing a closed-loop supply chain for critical materials such as neodymium and dysprosium, which are essential for high-performance permanent magnets. Under the new arrangement, Cyclic Materials will recycle 100 percent of the magnet manufacturing byproducts—commonly known as swarf—to recover valuable rare earth elements (REEs) for reuse in US domestic production.

Ahmad Ghahreman, Co-founder and CEO of Cyclic Materials, said the initiative reinforces the company’s mission to recover and reuse critical 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,” he said in the statement.

VAC’s CEO, Dr. Erik Eschen, commented that the partnership will help localize rare earth recovery and strengthen sustainable supply chains. “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,” he said, according to the release.

Industry observers note that this cooperation underscores growing efforts in North America to reduce dependence on imported rare earth materials, particularly from Asia. The U.S. government has been promoting initiatives to secure critical mineral supply chains, while private companies are increasingly investing in sustainable recovery and recycling technologies to meet the rising demand from electric vehicles, renewable energy, and defense applications.

According to Cyclic Materials, the company raised $57 million in a Series B funding round last year, backed by investors including Microsoft, Amazon, Hitachi Ventures, BMW i Ventures, and Jaguar Land Rover’s InMotion fund. The company recently announced plans to establish a new facility in Mesa, Arizona—its first in the United States—which will complement VAC’s upcoming magnet manufacturing site in South Carolina.

Founded in 2021, Cyclic Materials has developed proprietary technologies to economically and sustainably recover rare earths and other critical materials from end-of-life electric vehicle motors, wind turbines, MRI equipment, and data center components. Over the past few years, the company has built strong partnerships with global players such as Solvay, Vattenfall, Synetiq, and VACUUMSCHMELZE to promote a circular magnet supply chain.

Analysts suggest that partnerships like this could play a crucial role in strengthening regional resilience against global supply disruptions, while supporting the broader energy transition. By integrating recycling at the production stage, companies can significantly reduce waste, lower carbon emissions, and create long-term value in the circular economy.

The expanded agreement between Cyclic Materials and VAC demonstrates a shared commitment to advancing sustainable magnet production and ensuring a secure, transparent supply of rare earth materials for the fast-growing clean technology sector.

Source: Cyclic Materials