Highlights
- Cyclic Materials secures CAD$25 million investment to build a rare earth magnet recycling center in Kingston, Ontario.
- Backed by Amazon and Microsoft, the startup aims to process 500 tonnes of magnet-rich materials annually, starting in Q1 2026.
- The project seeks to reduce North American dependence on Chinese rare earth supply chains through innovative recycling technology.
Canadian startup Cyclic Materials (opens in a new tab) announced a CAD$25 million investment into a rare earth magnet recycling plant and research center in Kingston, Ontario. Backed by tech giants Amazon (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT), the company is scaling its REEPure technology to recover rare earth elements from retired wind turbines, electric vehicle components, and data center hard drives.
The new Kingston Centre of Excellence will house Cyclic’s first commercial unit, designed to process 500 tonnes of magnet-rich feedstock annually beginning in Q1 2026. The facility will convert this material into recycled mixed rare earth oxides (rMREOs), including neodymium, praseodymium, terbium, and dysprosium—critical inputs for permanent magnets used in electric vehicle (EV) motors, turbines, and electronics.
This announcement follows a CAD $4.9 million federal grant awarded in 2024 to support demonstration-scale operations. Cyclic also plans to open a second facility in Mesa, Arizona, in early 2026, indicating its ambition to serve both the North American market and the broader clean energy supply chain.
CEO Ahmad Ghahreman (opens in a new tab) stated: “With this Centre of Excellence, we’re advancing our core mission: to secure the most critical elements of the energy transition through circular innovation.”
Key Strategic Context
China currently controls over 90% of global rare earth magnet production and has repeatedly utilized export controls as a form of geopolitical leverage. Despite a new rare earth supply deal between the U.S. and China announced this week by President Donald Trump, concerns over long-term supply security persist.
Cyclic’s circular model could help decouple North American supply chains from Chinese dominance, offering potential upside for ESG-aligned investors and defense-focused strategics.
Some Investor Questions
- Scalability: Can 500 tonnes/year scale meaningfully against rising global demand? Hint, it’s not a huge amount. But note less than 3% of magnets originate from recycling.
- Feedstock security: How will Cyclic guarantee long-term magnet scrap supply at commercial volumes?
- Tech moat: Is REEPure™ defensible, or will competitors with chemical or hybrid methods outpace it?
- Profitability: Will unit economics hold up outside of government grant support?
- Exit strategy: Will tech giants drive eventual acquisition or public market liquidity?
Are the required policies being put in place by at least the Canadian government to support the inevitable ups and downs cycles ahead as Chinese competition becomes apparent? Retail investors should watch how Cyclic navigates feedstock agreements, operational ramp-up, and policy tailwinds in Canada and the U.S, among other unfolding conditions.
See Joseph Morton’s piece (opens in a new tab) in Mugglehead Magazine.
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