Highlights
- Rare earth permanent magnet recycling infrastructure projected to grow from 2,750 to 15,500 tonnes annually by 2030.
- Potentially recycling 17% of global magnet waste.
- Sector’s development hinges on:
- Coordinated policy action
- Waste stream management
- Market demand stimulation across global innovation systems
- Western stakeholders face a strategic imperative to develop magnet recycling capabilities
- Objective: Challenge China’s rare earth supply chain dominance.
In a landmark systems-level study published in Applied Energy (Vol. 388, June 2025), lead author Dr. Maarten Koese of Leiden University (opens in a new tab) and co-authors Sander van Nielen, Jessie Bradley, and René Kleijn analyze the global push to scale up end-of-life (EoL) rare earth permanent magnet (REPM) recycling. The study applies the Technological Innovation Systems (TIS) framework to track the evolution of this emerging sector—and evaluates its viability as a cornerstone of rare earth supply chain resilience.
Study Design and Purpose
Using the TIS framework, the researchers assessed seven core functions—including entrepreneurial activity, knowledge development, market formation, and resource mobilization—through a global lens. Data from patents, pilot plant deployments, collaborative R&D, and policy documents were synthesized with expert interviews to model the system’s historical development, current momentum, and future trajectory.
Key Findings
Since 2010, the rare earth permanent magnet (REPM) recycling sector has seen a rapid emergence of pilot plants, with 32 facilities launched or in development and projected capacity expected to rise from roughly 2,750 tonnes per year in 2022 to over 15,500 tonnes by 2030. If realized, this would allow for the recycling of an estimated 17% of global NdFeB magnet waste.
Yet even as infrastructure scales, access to end-of-life (EoL) magnets remains a critical choke point. Disassembly, collection logistics, and inconsistent waste streams continue to constrain the growth of a functioning recycling economy.
Technologically, the field is diversifying and maturing. Most plants rely on hydrometallurgy or hydrogen-based powder metallurgy. Although China dominates the intellectual property landscape with the majority of patents, North America leads in private investment, while Europe dominates public R&D through collaborative consortia. Policy frameworks are expanding, though inconsistently. The EU’s Critical Raw Materials Act proposes recycled content requirements but does not offer any binding mandates. Japan continues to set the global standard in long-term policy coordination, while the U.S. is gaining momentum. China, despite its dominance in manufacturing waste recycling, remains inactive on EoL recovery due to an abundant and inexpensive supply of virgin materials.
Systemically, the innovation ecosystem is entering the “take-off” phase. Entrepreneurial activity, rising legitimacy, and capital influx are reinforcing one another, creating positive feedback loops. However, true market formation remains elusive, being more dependent on state action than commercial demand. Without enforceable policies or structured incentives to drive both magnet waste recovery and demand for recycled material, the sector risks stalling just short of industrial lift-off.
Limitations
The authors caution that actual operational efficiency and access to feedstock will limit the early impact. Most pilot plants remain underutilized, and a stable market for recycled magnets has yet to emerge, as they are still more expensive and less standardized than their virgin counterparts.
Implications for Industry and Policy
This study delivers a critical insight for governments and magnet manufacturers: without coordinated action to secure waste flows and stimulate demand, magnet recycling will remain trapped in a pre-commercial limbo. The authors recommend policy tools, including minimum recycled content mandates, public procurement preferences, and design-for-disassembly standards.
For Western stakeholders seeking to weaken China’s chokehold on rare earths—especially neodymium and dysprosium—this study is both a roadmap and a warning. The innovation system is developing, but without a bold industrial strategy, the market will not mature in time to meet the explosive demand from electric vehicles (EVs) and wind turbines.
Source:
Koese M., van Nielen S., Bradley J., Kleijn R. (2025). The dynamics of accelerating end-of-life rare earth permanent magnet recycling: A technological innovation systems approach. Applied Energy, Vol. 388, 125707. https://doi.org/10.1016/j.apenergy.2025.125707 (opens in a new tab)
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