Cyclic Materials Secures $75M to Scale EV Rare Earth Recycling

Cyclic Materials, a leader in rare earth recycling, has closed a landmark $75 million Series C equity financing round, marking a pivotal step toward securing sustainable supplies for electric vehicle powertrains. The oversubscribed funding, led by T. Rowe Price Associates with participation from the Canada Growth Fund and other investors, brings the company's total equity to over $162 million. This capital injection will fuel the expansion of recycling infrastructure across the United States and Europe, while bolstering research at its Kingston, Ontario Center of Excellence.

Rare earth elements like neodymium and dysprosium are indispensable for the high-performance permanent magnets in EV traction motors, enabling the compact, efficient designs that define modern electrification. Yet, China's dominance in mining and processing—coupled with recent export restrictions—has exposed automakers to severe supply risks, triggering production halts in Europe and prompting a scramble for alternatives. Cyclic's innovative two-stage process, combining physical separation with hydrometallurgical refinement, recovers over 98% of these elements from magnet scrap and end-of-life EV motors, slashing water use and carbon emissions compared to virgin mining.

The company's hub-and-spoke model, featuring a new processing facility in Mesa, Arizona, and partnerships like the one with VACUUMSCHMELZE for South Carolina magnet by-products, positions it to deliver magnet-grade materials rapidly. Unlike lengthy mining projects, recycling facilities deploy swiftly, offering Western markets a faster path to supply resilience amid soaring EV demand. This development not only mitigates geopolitical vulnerabilities but also supports broader electrification goals by closing the loop on critical materials.

As automotive giants race to electrify fleets, Cyclic's high-recovery tech could redefine supply chains, reducing reliance on concentrated sources while advancing sustainability. With EV motor production scaling globally, such recycling breakthroughs arrive at a critical juncture, potentially stabilizing prices and ensuring long-term access to the rare earths powering tomorrow's vehicles.