Highlights

• Global rare earth recycling market projected to grow, driven by regulatory pressures and sustainability mandates.
• Current recycling of rare earth permanent magnets remains under 1% globally, with significant technological and economic barriers.
• Market expansion expected across:
  • U.S.
  • China
  • Japan
  • ASEAN
  • E.U.
• Growing interest from defense, EV, and clean tech sectors.

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A new industry report from QYResearch, Rare Earth Recycling Market 2025–2031 (opens in a new tab), projects robust growth in the rare earth recycling market driven by increasing regulatory pressure, supply chain risk, and environmental sustainability mandates. However, Rare EarthExchanges™ cautions that despite optimistic market signals, rare-earth magnets made from recycled material still represent a minuscule fraction of global supply.

Key Findings from the Report:

• The global rare earth recycling market is segmented into metallurgical and extraction-based recycling, with applications spanning permanent magnets, catalysts, phosphors, ceramics, and alloys.
• Leading players profiled include Rhodia SA, Hitachi Metals, Geomega Resources, Shenghe Holding, and Mitsubishi Materials, among others.
• Analysts apply SWOT, PESTLE, and Porter’s Five Forces methodologies to forecast growth drivers and barriers through 2031.
• Market drivers include rising consumer demand, regulatory clarity, ESG pressures, and evolving end-user expectations, especially from the defense, EV, and clean tech sectors.
• Notable regional expansion is expected across the U.S., China, Japan, ASEAN, and the E.U., with growing R&D investment in closed-loop recovery and solvent-free processes.

Rare Earth Exchanges (REEx) Commentary:

Despite encouraging market rhetoric, only a tiny portion of rare earth permanent magnets—estimated at under 1% globally—currently come from recycled feedstock. Structural barriers include:

• Technological hurdles in separating individual rare earths from end-of-life products.
• Lack of standardized collection infrastructure for used magnets and e-waste.
• Economic constraints, as recycled REEs often cost more than primary mined material from China or Myanmar.
• Geopolitical constraints, with much of the recycling innovation still dependent on Chinese or Sino-allied partnerships (e.g., Shenghe Holding).

QYResearch rightly highlights growing interest in companies like Geomega and REEcycle, but real-world scaling remains limited. Moreover, the report’s inclusion of Chinese SOEs and joint ventures raises critical questions: Will recycled material remain captive to China’s supply chain dominance? Can U.S. or European recyclers compete without aggressive industrial policy or defense-grade procurement?

 Rare Earth Exchanges is monitoring recycling trends in North America and Europe, with a number of venture capital upstarts. In the coming months, a Rare Earth Exchanges Recycling Company Ranking will be available.

Conclusion

The QYResearch report adds valuable insight into the rare earth recycling market’s structure and strategic landscape. Yet the path from promise to production remains steep. Investors and policymakers should temper enthusiasm with realism: until magnet-to-magnet recycling achieves economic parity, virgin rare earths—many from unstable or geopolitically fraught sources—will continue to dominate supply.

Source:

QYResearch. “Rare Earth Recycling Market - Latest Report on the Current Trends and Future Opportunities to 2031.” July 11, 2025. Available at: https://www.openpr.com/news/4101538/rare-earth-recycling-market-latest-report-on-the-current-trends (opens in a new tab).