2025 Climate Tech Companies to Watch: Cyclic Materials and its Rare Earth Recycling Tech

As the global push for a sustainable future accelerates, the spotlight increasingly turns to innovative climate technology companies leading the charge. From renewable energy solutions to advanced material science, these pioneers are crafting the blueprints for a greener world. In 2025, one name poised to make significant waves in the critical minerals sector is Cyclic Materials. This Canadian-headquartered firm is not just talking about a circular economy; it’s actively building the infrastructure to make it a reality, specifically targeting the essential yet often overlooked realm of rare earth magnet recycling.

The journey towards decarbonization—powering our homes with wind, driving electric vehicles, and connecting through smart devices—relies heavily on a class of materials known as rare earths. These elements, particularly those used in powerful magnets, are fundamental to clean energy technologies. Yet, their supply chain is complex, geographically concentrated, and environmentally intensive. Cyclic Materials aims to disrupt this paradigm by unlocking a vast, untapped resource: the rare earth magnets already in circulation.

The Critical Challenge: Fueling the Green Transition with Finite Resources

The global transition to clean energy is not merely a shift in power sources; it’s a re-evaluation of our material dependencies. Powerful rare earth magnets are at the heart of many advanced technologies, from electric vehicle motors and wind turbine generators to smartphones and robots. Demand for key magnet metals like neodymium is expected to surge as the energy transition progresses, and new supplies are urgently needed—especially outside of China, which dominates the rare earth supply chain and further escalated export restrictions in response to recent US tariffs.

“Rare earth magnets are essential for clean energy, but only a tiny fraction of the metals inside them are ever recycled. Cyclic Materials aims to change that by opening one of the largest rare earth magnet recycling operations outside of China next year. By collecting a wide range of devices and recycling multiple metals, the company seeks to overcome the economic challenges that have long held back such efforts.”

This alarming statistic underscores a massive missed opportunity for resource recovery and supply chain resilience.

One largely untapped supply is the mountain of rare earth magnet–containing devices discarded each year. In China, rare earth magnet manufacturers recycle significant amounts of scrap from their fabrication process, and a smaller number of magnets are collected for recycling at end of life. But globally, just 0.2% of rare earths are recycled from spent devices, largely because it’s hard to collect magnets that are contained within billions of old gadgets. This global deficit in recycling capability highlights an urgent need for innovative solutions that can sustainably source these indispensable materials.

Cyclic Materials: Innovating a Circular Future for Rare Earths

Cyclic Materials is trying to address that challenge head-on. The company, founded in 2021 and headquartered in Toronto, Canada, operates within the critical minerals industry, with a focused mission to establish robust rare earth recycling infrastructure. Their approach is designed to overcome the logistical and economic hurdles that have historically plagued rare earth recovery efforts.

Their innovative process involves a two-part recycling system. Rare earth–containing devices will first be amassed at strategically located “spoke” facilities. At these spokes, the devices are shredded, and their magnet waste is meticulously separated from steel parts and other recyclable metals. This initial separation is crucial for efficiency and purity. The concentrated magnet waste is then sent to centralized “hubs,” where Cyclic Materials employs a sophisticated chemical extraction process to recover a purified mixture of rare earth metals.

Today, Cyclic Materials is rapidly advancing its operational footprint. The company is constructing its first spoke facility in Mesa, Arizona, and its first commercial hub in Kingston, Ontario. These plants are expected to begin recycling magnets commercially next year in what is shaping up to be one of the largest such operations in the Western world. This strategic expansion aims to establish a reliable, non-Chinese supply chain for critical rare earths.

A notable fact showcasing their proactive approach: Cyclic Materials is already recovering rare earth magnets from decommissioned wind turbines, having collected used turbines on three continents. This demonstrates their ability to tackle large-scale industrial waste streams, a key differentiator in the recycling landscape.

Beyond Mining: Environmental Impact and Global Ambitions

The potential for impact from Cyclic Materials’ work is profound. With the first big waves of EVs and wind turbines approaching the end of their useful lives, rare earth magnet recycling could recover valuable resources and make the energy transition far more sustainable. The environmental benefits are substantial: Cyclic Materials says its process uses 95% less water and produces roughly 60% fewer emissions than traditional rare earth mining does. This represents a significant leap towards truly green technology.

While the company is starting with a focused capacity—its Kingston hub is designed to recycle 500 metric tons of magnet waste a year—this is merely the initial phase of a much larger vision. The market potential is immense; by 2035, there could be over 43,000 metric tons of recyclable rare earth magnets in the US alone. With a growing list of approximately 2,000 potential device suppliers and customers, combined with over $100 million in funding, the firm is strategically positioning itself for significant global expansion.

Cyclic Materials isn’t operating in isolation; they are forging crucial partnerships across the supply chain. For example, the company has signed agreements with a range of suppliers, including e-scooter and e-bike giant Lime and RenerCycle, which specializes in decommissioning old wind turbines, to efficiently collect magnets wherever they can be found. Earlier this year, the firm announced it will sell its recycled rare earth mixture to the Brussels-based chemical company Solvay, securing a vital downstream channel for their recovered materials.

Navigating the Complexities: Strategic Growth and Future Outlook

Making a profit from rare earth recycling isn’t easy—it can cost more to collect and recycle rare earth magnets, which are deeply embedded in devices of different sizes and shapes, than a recycler will earn from reselling the metals. Even if rare earth metals can be recycled cost-effectively, there are only a few magnet makers outside of China to sell them to. These economic realities present a challenging landscape for any new entrant.

However, Cyclic Materials is actively addressing these hurdles through strategic diversification and innovation. In the meantime, Cyclic Materials’ spoke facilities will also recycle aluminum, steel, and copper. This clever strategy provides additional, more immediate revenue streams, bolstering their financial stability as the rare earth recycling market matures and expands outside of China.

Looking ahead, Cyclic Materials intends to build more spoke and hub facilities around the world, first scaling its operations in North America, then expanding to Europe and Asia. This ambitious blueprint aims to create a truly global circular economy for rare earths. The company also plans to keep innovating: At its R&D center in Kingston, the company is developing ways to address recycling challenges in specific industries, such as how to rapidly deconstruct wind turbine generators and efficiently separate out their supersized magnets.

How You Can Support the Circular Economy for Rare Earths: Actionable Steps

• Embrace Responsible Device Disposal: Educate yourself and your community on proper recycling channels for electronic devices, particularly those containing motors or magnets like smartphones, e-bikes, and small appliances. By diverting these from landfills, you contribute to the raw material pool for companies like Cyclic Materials.
• Advocate for Circular Design: Encourage manufacturers to adopt “design for recycling” principles, making it easier to extract valuable rare earth magnets at the end of a product’s life. Support brands that demonstrate a commitment to using recycled content and sustainable practices.
• Support Policy and Investment: Stay informed about policies aimed at strengthening critical mineral supply chains and supporting recycling initiatives. Advocate for government and private sector investment in innovative technologies and infrastructure that promote a circular economy for rare earths, fostering a more resilient and environmentally friendly industrial base.

Conclusion: A Greener Tomorrow, One Magnet at a Time

Cyclic Materials is more than just a company; it represents a vital shift in how we approach resource management for our planet’s most critical materials. By tackling the complex challenge of rare earth magnet recycling, they are not only creating new supply chains but also significantly reducing the environmental footprint of our clean energy future. As we look towards 2025 and beyond, companies like Cyclic Materials will be instrumental in ensuring that the energy transition is not only rapid but also truly sustainable.

Join the Movement Towards Sustainable Technology

Learn more about Cyclic Materials’ groundbreaking work and discover how you can contribute to a robust, circular economy for critical minerals. Every step towards responsible recycling and sustainable practices moves us closer to a healthier planet. Visit their official channels to stay updated on their progress and impact.