Closed-Loop Recycling Revolutionizes Rare Earth Magnets for Electronics

In a groundbreaking move for sustainable electronics manufacturing, Noveon Magnetics has partnered with South Korea's Kangwon Energy Co., Ltd. and LG Electronics Co., Ltd. to pioneer closed-loop recycling of rare earth permanent magnets. This initiative leverages Noveon’s proprietary Magnet-to-Magnet (M2M™) technology, which transforms end-of-life (EOL) magnets recovered from LG products—such as household appliances and consumer electronics—into new, high-performance magnets for reuse in the same product lines. The process promises to deliver magnets that match or exceed the strength and quality of newly mined materials, all while slashing the environmental footprint of production.

The collaboration kicks off with validation testing on magnets extracted from LG's EOL devices, ensuring real-world performance data that could accelerate industry-wide adoption. By reclaiming critical rare earth elements like neodymium, praseodymium, dysprosium, and terbium, the program directly addresses vulnerabilities in global supply chains. China currently dominates over 90 percent of rare earth magnet production, but recent export restrictions—intensified since April 2025—have triggered shortages, price spikes, and disruptions for electronics manufacturers worldwide. These heavy rare earths are indispensable for compact, powerful magnets in smartphones, laptops, hard drives, and emerging AI hardware, where high-temperature stability and efficiency are non-negotiable.

Expansion plans include scaling up at a new South Korea facility developed through Noveon’s joint venture with Kangwon Energy. This site will process larger volumes of magnet waste, creating a circular economy model that minimizes mining dependency and geopolitical risks. Scott Dunn, CEO of Noveon Magnetics, hailed the effort as 'a major step toward a secure and sustainable rare earth supply chain,' emphasizing joint development with LG to validate eco-friendly tech. As demand surges for rare earths in batteries, EVs, and data centers, this recycling breakthrough offers electronics giants a resilient alternative, potentially reshaping material science by proving recycled magnets can power next-gen consumer tech without compromise.

Meanwhile, persistent supply bottlenecks loom large, with experts forecasting elevated prices for heavy rare earths like dysprosium and terbium through 2026 and beyond. China's dual-use export controls, targeting Japan’s magnet production, ripple into global electronics supply chains, affecting everything from precision motors to advanced displays. This initiative not only mitigates those risks but also sets a precedent for battery tech and material innovations, where recycled rare earths could enhance energy density and longevity in lithium-ion cells used across portable devices.