Scaling rare earth recycling to close critical minerals supply gaps

Rare earth elements power electric motors, wind turbines and many consumer electronics, yet less than 1% are recycled worldwide.

Conventional recovery relies on manual dismantling, mechanical shredding, acid leaching and high‑temperature processing — approaches that are energy intensive, chemically hazardous and often uneconomic because REEs are present at low concentrations.

Pressure to change is rising: demand for permanent magnets is forecast to jump from about 59,000 tonnes in 2022 to roughly 176,000 tonnes by 2035, creating a potential 60,000‑tonne shortfall (around 30% of demand).

Recycling offers large environmental gains — studies suggest up to 75% lower energy use and roughly 60% fewer carbon emissions versus primary mining — and reduces radioactive impurities tied to some ore deposits.

New separation and dismantling technologies are shifting economics. Chromatography‑based processes (used commercially by some firms) claim about 75% energy savings and 70% lower emissions; acid‑free dissolution is recovering REEs from data‑centre drives; specialized mechanical and chemical flows enable simultaneous recovery of rare earths and base metals.

Commercial initiatives include pilot‑to‑scale plants, a $25m Canadian facility targeting ~500 tonnes/year of magnet feedstock, and a $500m partnership to build a closed‑loop supply for product makers.

Major remaining hurdles are collection and sorting infrastructure, price volatility, regulatory frameworks and scale economics. Innovations on the horizon — bioleaching, selective precipitation, direct recycling and AI‑guided disassembly — aim to unlock the urban mine and supplement primary supply.

By 2035 the urban mine could yield roughly 40,000 tonnes of pre‑consumer scrap and 41,000 tonnes of post‑consumer material, making recycling a strategic complement to mining.