Highlights
- Rare earth recycling is becoming increasingly important due to growing demand, limited natural deposits, and geopolitical risks associated with their extraction.
- The global rare earth metals recycling market is projected to reach USD 882 million by 2031, with a CAGR of 7%, driven by sustainability concerns and technological advancements.
- Key players in rare earth recycling include Urban Mining Company, Neometals, and Umicore, with China dominating the market but Western companies emerging as important contributors.
Rare earth recycling becomes ever more crucial in the field of rare earth material products, due to the increasing demand for rare earth elements (REEs) in high-tech industries and the environmental and geopolitical challenges associated with their extraction.
A host of drivers make this topic ultra relevant. For example, REEs are critical for products like electric vehicles, wind turbines, smartphones, and defense technologies, all or most deemed essential for national security by many nations. Yet the natural deposits of REEs are limited, and mining them is complex, costly, and often environmentally damaging.
As Rare Earth Exchanges has chronicled, anywhere from 80% to 90% of rare earth mining and refining is controlled by China, creating a geopolitical risk for countries and industries reliant on these materials. Recycling helps diversify the supply chain and reduce dependence on a single source.
What’s environmental impact got to do with it?
MiningREEs, a highly polluting process, often involves the use of harmful chemicals that can contaminate water and soil, leading to long-term environmental damage. Recycling rare earths from end-of-life products helps reduce the need for new mining operations and lowers the overall environmental footprint of REE usage.
And from a sustainability and environmental point of view these matters. As the demand for REEs grows due to the clean energy transition and advanced manufacturing, recycling provides a sustainable source of these materials, reducing pressure on virgin resources.
Importantly this process also supports a circular economy by keeping valuable materials in use and reducing waste from industries such as electronics, automotive, and renewable energy.
But economic value becomes a key factor for investment in this activity. Recycling can reduce the costs associated with rare earth extraction and refinement, potentially stabilizing the prices of these materials. It can also create new economic opportunities through innovation in recycling technologies and business models.
So, how does the rare earth recycling process work?
The process of recycling rare earth elements typically involves the recovery of REEs from end-of-life products, such as electronics, magnets, and batteries. The methods used vary depending on the source of the material and the specific rare earth elements being recovered. Rare Earth Exchanges provides a brief overview ofthe steps:
Steps in Process | Category | Details |
|---|---|---|
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Collection and Sorting |
Source Identification |
End-of-life products containingrare earth elements are identified and collected. Common sources includepermanent magnets (in motors and hard drives), electronics (smartphones, laptops), and electric vehicle batteries. |
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Disassembly and sorting |
The devices are disassembled to separate components that contain rare earths, such as magnets or display panels. Automated or manual sorting methods can be used depending on the complexity of the product. |
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Material Recovery |
Magnetic separation |
For products like electric motors, magnets are often removed and separated from other materials. Magnetic separation technology can be used to isolate these magnets, which contain rare earth elements like neodymium anddysprosium |
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Mechanical processing |
Components like magnets are sometimes mechanically shredded or broken down to facilitate the recovery process. |
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Dissolution and Extraction |
Hydrometallurgical processes |
Recyclers often use chemical processes, such as leaching, to dissolve the materials and extract rare earth elements. Acids or solvents are used to separate REEs from the surrounding materials, like traditional mining but applied to recycled products. |
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Solvent extraction |
Once dissolved, the rare earths are separated using solvent extraction techniques that isolate different elements from each other based on their chemical properties |
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Electrochemical or Pyrometallurgical Processing |
Electrowinning |
This technique uses electrical currents to extract pure rare earth metals from the solution. |
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Pyrometallurgy |
In some cases, high-temperature methods like smelting are used to recover rare earth elements from metal alloys or ores that contain them. This process is common for recycling rare earths from electronics or industrial equipment. |
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Refinement and Purification |
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After extraction, the rare earth elements are further refined to achieve the desired purity levels. This step is critical for ensuring that the recycled materials meet the standards required for reuse in high-tech applications like electronics and renewable energy systems. |
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Reuse in Manufacturing |
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Once the rare earth elements are purified, they can be reintroduced into the supply chain to be used in the production of new products. These recycled materials can help reduce the need for newly mined rare earths and contribute to more sustainable manufacturing practices. |
What are some challenges?
A range of challenges are involved with Rare Earth Recycling from complexity of products involved to low concentration of the rare earth element itself to technical difficulties involved with the recycling process.
Despite these challenges, advancements in recycling technologies and increased focus on sustainability are driving growth in this field, making rare earth recycling a vital part of the future supply chain for critical materials.
What’s the market size?
According to recent market reports, the global rare earth metals recycling market size is currently valued around USD 250 – 500 million with projections to reach USD 882 million by 2031, growing at a CAGR of approximately 7%.
Key points about the rare earth metals recycling market:
- Market size in 2022: Around USD 480 million
- Projected market size by 2031: USD 882 million
- CAGR: 7%
Belgium is considered a leader in rare earth metals recycling. Belgium is also recycling batteries and electrified vehicles.
Other players in the rare earth metals recycling market include:
- Solvay SA (Belgium)
- Hitachi Metals, Ltd. (Japan)
- Umicore (Belgium)
- Osram Licht AG (Germany)
- Energy Fuels, Inc. (US)
- Global Tungsten & Powders Corp. (US)
- REEcycle Inc. (US)
The Asia Pacific region is the largest market for rare earth metals recycling. This is due to: A growing population, Favorableinvestment policies, Growing economies, and Government initiatives topromote the electronics and automobile industries.
China is the world’s largest consumer of rare earth metals. China also controls over 85% of the processing capacity for rare earth metals.
In China, some of the major companies involved with rare earth metal recycling include: China Northern Rare Earth (Group) High-Tech Company Limited, China Rare Earth Group, Guangdong Rare Earth Industry Group Company Limited, Shenghe Resources Holding Company Limited, Inner Mongolia Baotou Steel Union Company Limited, and Xiamen Tungsten Corporation; these companies are largely state-owned enterprises (SOEs) that dominate the Chinese rare earth market, with recent consolidation further centralizing the industry under a few key players like China Rare Earth Group.
Some Key China trends
- Dominant Players:
The “Big Six” SOEs, including China Minmetals, Chinalco, Ganzhou Rare Earth Group, and Guangdong Rare Earth Industry Group, are key players in the rare earth recycling sector.
- Consolidation:
Recent mergers have created larger entities like China Rare Earth Group, further consolidating China’s control over rare earth production and recycling.
- Focus on Strategic Importance:
The Chinese government views rare earths as strategically important, leading to strict control over the industry.
What are some leading players in the West?
Several companies are emerging as leaders in the rare earth element (REE) recycling space due to the increasing demand for sustainable sources of these critical materials. While the rare earth recycling industry is still developing, the following companies are notable for their work in this field.
What follows is a Rare Earth Exchanges breakdown for review. The list is not exhaustive but is meant to provide an overview of the rare earth recycling space.
Company | HQ | Summary |
|---|---|---|
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Texas, USA |
UMC specializes in the recycling of rare earth magnets, particularly neodymium-iron-boron (NdFeB) magnets, which are used in electric vehicles, wind turbines, and other high-tech applications. Their patented recycling process extracts rare earth materials from end-of-life products like motors and hard drives. Privately held. Close with U.S. DoD. | |
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Australia |
Neometals is advancing the recycling of lithium-ion batteries, which often contain rare earth elements. They have a joint venture called “Primobius,” which focuses on recovering materials like cobalt, nickel, and rare earths from spent batteries. They are also working on a recycling project specifically for rare earth magnets. 22.5% owned by insiders. | |
Houston, TX |
USA |
REEcycle has developed a patented method to recover rare earth elements from electronic waste, particularly from discarded permanent magnets. Their focus is on sustainable recovery of neodymium and dysprosium, which are essential in high-performance electronics and clean energy technologies. Founded in 2012 at the University of Houston. The company’s chemist, Dr. Samarasekere, became interested in recycling rare earth elements after reading Department of Energy reports on critical materials for future energy. |
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Hitachi Metals know Proterial Ltd. (opens in a new tab) |
Japan |
Hitachi Metals has been involved inthe recycling of rare earth magnets used in motors and generators. Theyfocus on reducing the need for newly mined rare earths by developing efficient methods to recycle and reuse magnets. |
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Canada |
Geomega is working on a proprietary process called ISR (Innord Separation Technology) that recycles rare earth elements from mining tailings and waste streams. They aim to recover REEs in an environmentally sustainable way, focusing on magnetic materials used in motors, wind turbines, and electronic products. | |
USA |
Although not a commercial entity, Ames Laboratory, operated by the U.S. Department of Energy, has been working on innovative technologies for recycling rare earth magnets and developing alternative materials. Their research supports the commercialization of sustainable recycling processes. | |
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Dallas, TX, USA |
Momentum Technologies has developed a process to recover rare earth elements from discarded electronics and lithium-ion batteries. They work on closed-loop recycling, where REEs can be recovered and reintroduced into the supply chain without the need for virgin mining. Founded in 2016, this company specializes in mining, including rare earth elements, urban mining, recycling, and e-waste | |
Honda Motors |
Japan |
Honda has implemented a rare earth recycling program as part of its larger sustainability efforts. The company works on extracting REEs from end-of-life hybrid vehicle batteries and magnets used in motors, reducing reliance on new rare earth materials |
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Simbeyond (opens in a new tab) (Collaborating with partners in REE recycling) |
Netherlands |
Simbeyond develops simulation technologies that enhance rare earth recycling processes. They collaborate with manufacturers and recycling companies to optimize the extraction and reuse of rare earth materials from electronic waste. |
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Belgium |
Umicore is a global leader in materials technology and recycling. They have experience in recycling precious and rare metals, including rare earth elements used in automotive catalysts and electronic devices. The company’s roots go back to 1805! |
These companies are at the forefront of rare earth recycling, helping to address the supply constraints of these critical materials while promoting sustainability in industries like electric vehicles, renewable energy, and electronics.
Daniel
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