In this series, we introduce exhibitors from the trade show floor of the International Automotive Recycling Conference IARC, held in Hamburg, Germany. The second installment features Canada's Cyclic Materials.
Cyclic Materials
Canada-based Cyclic Materials operates a recycling business focused on recovering rare earth elements from magnet-containing components used in automobiles and other products, and supplying them back as magnet materials. The company has developed technology to process magnets extracted from end-of-life EV drive motors, industrial motors, and similar sources, converting them into magnet concentrate, and further processing to extract mixed rare earth oxides (MREOs). At their booth on the exhibition floor, they walked visitors through the process while displaying actual material samples.
The company currently operates facilities in Kingston, Ontario, Canada, and Mesa, Arizona, USA, and is working to establish a network of rare earth magnet recycling facilities across North America. This includes expansion of the company’s Centre of Excellence in Canada, as well as investing US$82 Million to establish a rare earth recycling campus in South Carolina. The company secured US$75 million in a Series C funding round in January 2026. Looking ahead, the company envisions expanding into Europe, where it plans to extract rare earths from end-of-life products collected locally and return them directly to European supply chains — a "regional circular model."
Their target market extends well beyond the automotive sector. Products incorporating rare earth magnets span a wide range, from internal combustion engine vehicles to EVs, hybrid vehicles, e-bikes, e-scooters, home appliances, and industrial machinery. In an interview, a company representative stated that "every product that uses a magnet is a potential source of raw material," and indicated that against this backdrop of diverse applications, the company views Asia — particularly Japan and South Korea — as an important growth area.
On the regulatory and policy front, the priorities differ by region. The Cyclic Materials representative noted that in Europe, the policy drivers are improving recycling rates for automotive components and advancing the circular economy, while in North America, interest in rare earth recycling is driven primarily by supply chain security — specifically, reducing dependence on China. Japan, they observed, places weight on both dimensions simultaneously, making it "a presence that straddles both sides" in its pursuit of securing critical mineral supplies while also achieving resource circularity.
Globally, the rare earth recycling rate remains below 1%, meaning a vast pool of potential resources continues to be discarded. Cyclic Materials has positioned itself around the mission of "turning scrap into a new supply source," and is working to expand its operational footprint from North America into Europe and Asia. As geopolitical risks surrounding rare earths continue to rise, the recycling routes being built by players like Cyclic Materials look set to become a critical piece in reconciling decarbonization with resource security.
Translated from the article originally published in Japanses.
