Cyclic Materials, an advanced recycling company focused on creating a circular supply chain for rare earth elements (REEs) and other critical materials, has expanded its partnership with VACUUMSCHMELZE (VAC), a developer of magnetic materials and solutions used in electric vehicles (EVs), renewable energy, and industrial systems.
The companies have signed a 10-year exclusive agreement for the recycling of all magnet production byproducts (swarf) from VAC’s new manufacturing facility in Sumter, South Carolina, scheduled to begin operations at the end of 2025. The partnership builds on their 2024 agreement to establish efficient recycling of critical materials used in high-performance permanent magnets.
“At Cyclic Materials, our goal is to recover critical materials from permanent magnets that can be reintroduced into the supply chain to reduce dependence on traditional mining and overseas sources,” said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. “With the extension of our partnership with VAC, we’re building a foundation for a localized North American supply chain.”
VAC produces neodymium-iron-boron (NdFeB) rare earth magnets used in automotive drivetrains, wind turbines, and other high-efficiency electric systems. Through this expanded agreement, VAC aims to reintegrate recycled mixed rare earth oxides (rMREOs) supplied by Cyclic Materials into its production processes, furthering the development of closed-loop magnet manufacturing.
Cyclic Materials raised $57 million in its Series B round in 2024, supported by investors such as Microsoft, Amazon, Hitachi Ventures, BMW i Ventures, Jaguar Land Rover’s InMotion Ventures, and Energy Impact Partners. The company recently announced plans for a new U.S. facility in Mesa, Arizona, part of its effort to build a cross-border network for critical material recovery that supports EV manufacturing, renewable energy, and electronics recycling.
Founded in 2021, Cyclic Materials has developed proprietary technologies for recovering REEs and other valuable elements from end-of-life EV motors, wind turbines, MRI systems, and data center components. The company has established partnerships with organizations including Solvay, Vattenfall, Synetiq, and VAC to enable industrial-scale magnet recycling and build a circular supply chain for rare earths.
Filed Under: Technology News