Cyclic Materials has opened its first large-scale commercial facility for recycling rare earth element magnets in Mesa, Arizona, in a move aimed at increasing the availability of these materials in the United States and reducing dependence on supply chains concentrated outside the country.
The facility can process up to 25,000 metric tons annually of products containing magnets, after they are mechanically separated from equipment that has reached the end of its operational life. The company did not specify which products the facility processes, but it signed a major agreement in July with electronics recycler ERI.
What does the facility produce?
The facility uses the first large-scale commercial application of Cyclic Materials’ proprietary MagCycle technology. The technology produces a rare earth magnet concentrate called Mag-Xtract, along with copper, aluminum and steel recovered from the processed materials.
According to the company, more than 7,000 metric tons of magnet-containing materials have already arrived at the facility, and processing operations have begun. Cyclic Materials expects to send its first commercial shipments to customers in the United States later in September 2026.
Why does this matter to the automotive and energy sectors?
Permanent magnets made from rare earth elements are used in a large number of traction motors in electric vehicles, as well as in wind turbine generators. These materials are also used in electronics, robotics, industrial equipment, artificial intelligence hardware components and defense applications.
Cyclic Materials says global demand for rare earth elements could triple by 2035, driven by the automotive, energy, artificial intelligence, robotics, electronics and defense sectors. The company believes that the concentration of the global supply chain in China leaves manufacturers more exposed to trade restrictions and geopolitical disruptions.
What is changing in practical terms?
The facility does not add a new mining source, but it recovers usable materials from discarded products, which could supplement newly mined supplies and provide an additional route for supplying U.S. manufacturers with magnet materials. The company says the facility was completed 17 months after it was announced, a period that reflects the transition of MagCycle technology to commercial operation, rather than merely a limited trial.
The project’s actual impact will remain tied to its ability to maintain a flow of used materials and convert its outputs into products that meet customers’ needs. The source does not specify the types of equipment being processed or the actual production volume of Mag-Xtract, and the announced capacity is annual processing capacity, not a confirmed quantity of recovered elements.
Next step in South Carolina
Cyclic Materials is also developing a recycling complex in South Carolina, which is scheduled to open in 2028. The site will combine magnet recovery and rare earth element refining in a single facility, expanding the scope of operations compared with the current Mesa facility.
According to CEO and founder Ahmed Ghahreman, the Mesa facility aims to keep resource-rich products in the United States and build new domestic capacity for rare earth elements and critical minerals. For manufacturers of electric vehicles and renewable energy equipment, the project’s core value will be determined by the consistency of commercial supplies and the quality of recovered materials, two aspects for which the source material did not provide complete operational details.