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Accelerating Rare Earth Recycling Through Policy

10/13/2025, 7:04:00 PM | United States

Military & Defense

Policy-driven recycling of neodymium and related rare earths can rapidly expand supply, reduce primary demand, and ease security tensions.

Trade tensions and export restrictions have focused attention on rare earth supply risks, but recycling offers a faster, lower-impact path to resilience.

Defense uses concentrate on five hard-to-replace elements—neodymium, praseodymium, dysprosium, terbium and samarium—which are also among the most recoverable from existing equipment. Many of these metals occur in discrete modules that allow economically viable recovery with relatively modest infrastructure investment.

Large, aging engineering stocks are particularly promising. Direct-drive wind turbines commonly house 400–800 kg of neodymium–iron–boron magnets each; with roughly 70,000 turbines in the U.S. producing about 10% of electricity, turbine decommissioning could unlock substantial secondary supply. Old hard disk drives and diverse electronics add further recoverable inventories. A shift to circular policies—product take‑back, targeted recycling competitions, and industrial-scale recovery—could materially lower primary demand; one study projects a 701 kt increase in secondary supply and a 2,306 kt reduction in primary demand over three decades under stronger circular measures.

Policy priorities include accelerating recycling facility deployment, improving demand forecasts and inventory audits (including military stocks), integrating recycling into strategic materials programs, and enhancing data transparency. These steps can reduce strategic anxieties, narrow financing shortfalls highlighted by international assessments, and enable cooperative approaches to critical minerals security.

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