Highlights

• Czech research team creates environmentally friendly method to recover rare earth elements from used permanent magnets
• Novel water-based chelation technique separates neodymium and dysprosium without toxic waste, with potential for industrial scalability
• Discovery reveals holmium in newer electric vehicle motors, challenging current recycling protocols and highlighting gaps in material recovery

A Czech research team at Institute of Organic Chemistry and Biochemistry (opens in a new tab) (IOCB) Prague has unveiled a patented, environmentally friendly method to recover and purify rare earth elements—such as neodymium and dysprosium—from used permanent magnets, offering a potentially scalable solution to one of the biggest obstacles in magnet recycling. The findings were published in the Journal of the American Chemical Society (opens in a new tab) (JACS) in late June.

Led by Dr. Miloslav Polášek, PhD, (opens in a new tab) and PhD student Kelsea Grace Jones (opens in a new tab), the team developed a novel water-based chelation method that isolates neodymium and separates it from dysprosium without using organic solvents or generating toxic waste. The process reportedly achieves equal or better separation performance compared to current industrial methods, with a far lower environmental footprint.

This development couldn’t come at a more critical time. With global demand for rare earth magnets soaring—fueled by the rise of EVs, wind turbines, and smart devices—governments and manufacturers are urgently exploring ways to reduce dependence on primary mining, which is dominated by China and known for generating toxic and radioactive waste. Urban mining from e-waste and end-of-life vehicles is seen as a key piece of the puzzle.

The team also uncovered a surprising oversight: holmium—a rare earth element not commonly acknowledged in recycling protocols—was detected in magnets from newer electric vehicle motors. This raises questions about whether current recycling programs are missing valuable materials, and whether magnet manufacturers are quietly shifting formulations without disclosing ingredient changes.

As the team awaits feasibility study results and explores industrial partnerships through IOCB Tech, the path to commercialization may accelerate. Still, investors should watch closely:

• Will this water-based method scale economically to compete with China’s dominant rare earth separation plants?
• Can the discovery of holmium lead to more updated and comprehensive recycling standards across the EV industry?
• How quickly can this innovation transition from the lab to industrial deployment?

Rare Earth Exchanges™ will continue tracking this innovation as part of our mission to empower retail investors with cutting-edge intelligence across the global critical mineral supply chain.

Visit www.rareearthxchanges.com (opens in a new tab) for more news and insight.

Source: Envirotec Magazine, July 2025