Rare Earth Exchanges

REEMAG, an Israeli Spinoff Declares Breakthrough in Recycled Rare Earth Magnets – Sustainable Shift or Market Hype?

Leave a Comment

Highlights

  • REEMAG scales up rare earth magnet recycling process 100-fold, potentially disrupting China’s rare earth market dominance.
  • The company claims to recycle neodymium-iron-boron magnets with 98% efficiency using only electricity, reducing the need for new material mining.
  • The technology aims to support Western efforts to diversify and secure independent rare earth supply chains for critical technologies.

REEMAG LLC, (opens in a new tab) an Israeli spinoff and rare earth magnet recycling company under Cove Capital LLC, (opens in a new tab) has announced a major milestone in scaling up its proprietary recycling process for neodymium-iron-boron (NdFeB) magnets. The company claims to have expanded its process from single-magnet recycling to handling batches 100 times larger, maintaining the same efficiency and performance. This advancement purportedly positions REEMAG as a potential disruptor in the rare earth magnet supply chain, traditionally dominated by China’s mined rare earths.

A Spin-off

REMAG is a spinoff of Yeda Technology Transfer (opens in a new tab) (Yeda), developing an efficient method for recycling old magnets into reusable NdFeB powder with 98% efficiency using only electricity. This cost-effective process reduces the need to mine new rare earth materials and allows us to compete with newly mined magnets, according to Yehuda Borenstein (opens in a new tab), founder. Note that Yeda is the technology transfer arm of the Weizmann Institute of Science (opens in a new tab) in Israel.

Key Significance and Potential Impact

Rare earth magnets are critical for electric vehicles, wind turbines, and defense applications, yet China controls over 90% of rare earth refining and magnet production. REEMAG’s successful scaling of recycled NdFeB magnets could help reduce Western dependence on Chinese supply chains, offering an alternative circular economy model where end-of-life magnets are reprocessed into new materials. This aligns with the U.S. and EU’s strategic goals of building independent rare earth supply chains and mitigating geopolitical risks.

The announcement also emphasizes cost competitiveness, claiming that REEMAG’s recycled magnets can match newly mined products from China in both price and quality. If true, this would be a significant market shift, as high costs have traditionally been a barrier to Western rare earth recycling efforts. However, the release does not provide specific data or independent validation to substantiate these claims, leaving room for skepticism.

Strengths and Unanswered Questions

While the environmental and geopolitical advantages of REEMAG’s technology are clear, several key questions remain unanswered:

  • Technological Viability – The release lacks details on the technical aspects of the recycling process. How does REEMAG’s process compare to existing rare earth magnet recycling methods in terms of energy efficiency, yield, and purity?
  • Supply Chain Scale: Expanding from a 100-fold increase in processing is promising, but is it enough to compete at scale with China’s massive rare earth production? Current global demand far exceeds the capacity of most Western recycling efforts.
  • Economic Sustainability: While the release claims cost parity with Chinese magnets, it does not disclose pricing structures, production costs, or the impact of fluctuating rare earth market prices.
  • Market Adoption: The company states it is forming industry partnerships, but it does not mention specific customers or contracts. Without industry buy-in, large-scale commercialization remains uncertain.
  • Remember, tackling China’s rare earth complex in a materially sustainable way will require sizable state subsidies over the years.

A Step in the Right Direction, but More Transparency Needed

REEMAG’s progress represents an important step in diversifying the global rare earth magnet supply chain. It offers a potentially viable and sustainable alternative to Chinese production.

However, the absence of concrete third-party validation, production cost breakdowns, and committed industrial partners leaves its long-term viability unproven. As Western economies scramble to secure rare earth supplies, initiatives like REEMAG could be pivotal—but without greater transparency and industry adoption, their impact remains speculative rather than transformative.

Note Cove Capital, a venture and private equity group, is based in Australia and New York.

Spread the word: