Cyclic Materials Secures $75M to Revolutionize Rare Earth Recycling for EVs

In a major boost for the electric vehicle supply chain, Cyclic Materials has closed a $75 million Series C funding round to scale its innovative recycling operations across the US, Europe, and Canada. The investment targets the recovery of critical rare earth elements from end-of-life EV motors, wind turbines, and electronic waste, addressing the acute shortages triggered by China's 2025 export restrictions on dysprosium, terbium, and other heavy rare earths essential for high-performance magnets.

Rare earth elements like neodymium and praseodymium form the backbone of neodymium-iron-boron (NdFeB) permanent magnets, which power the compact, efficient electric motors in EVs and hybrids. Without these magnets, motors become bulkier and less energy-efficient, undermining the performance edge that makes electrification viable. Cyclic's proprietary two-stage process—combining physical separation with hydrometallurgical refinement—boasts over 98% recovery rates, slashes water usage to just 5% of traditional mining, and cuts carbon emissions by more than 61%. This positions recycling as a faster, greener alternative to new mines, which often take years to develop.

The timing couldn't be more critical. China's tightened licensing regime, launched in April 2025, has caused production halts at Ford's Chicago plant, German component factories, and Indian EV assemblers like Bajaj and Tata Motors. U.S. giants GM, Ford, and Stellantis secured temporary six-month licenses, but global inventories are dwindling, with experts predicting persistent bottlenecks into 2026. Cyclic's technology directly targets heavy rare earths, which are scarcer in Western deposits, enabling North American automakers to build resilient, localized supply chains.

By linking recycled materials to surging e-mobility demand, Cyclic is not just mitigating risks but fueling innovation. Each hybrid or EV can require several kilograms of rare earths, and with hybrid sales projected to top $500 billion by 2032, recycling could capture a vital share of this growth. This move aligns with U.S. and EU strategies, including $134 million in funding for rare earth demonstration facilities, signaling a broader shift toward circular economies in automotive manufacturing. As automakers race to diversify beyond China—which controls 90% of processing—initiatives like Cyclic's promise to stabilize prices, enhance EV affordability, and accelerate the global transition to sustainable transport.