From Waste to Resource: Cyclic Materials’ CAD $71M Series B Financing to Expand Rare Earth Recycling Infrastructure

As we approach the end of 2024, advancements in clean energy are taking center stage. In this dynamic landscape, Cyclic Materials has carved out a vital niche by creating a circular supply chain for rare earth elements (“REEs”) and other critical materials. On September 25, 2024, the company successfully closed a USD $53M Series B equity round, bringing its total equity raised to over USD $83 million. The round was led by ArcTern Ventures, with notable investors including Microsoft’s Climate Innovation Fund.

REEs are essential components in nearly all electronic devices and play a pivotal role in sustainable energy development, enhancing the efficiency of key clean energy technologies. For example, neodymium significantly improves wind turbine power generation efficiency and both lithium and cerium are critical for electric vehicle batteries. However, despite their importance, the recycling rate for REEs remains around 1%, primarily due to inadequate infrastructure.

Founded in 2021, Cyclic Materials utilizes proprietary technologies to economically and sustainably recover critical raw materials from end-of-life electric vehicle motors, wind turbines, MRI machines, and data center electronic waste. To establish a circular supply chain, the company has forged strategic partnerships with industry leaders, including Solvay to supply recycled mixed rare earth oxide, Synetiq to recycle REEs from vehicle motors, and Vacuumschmelze to recycle critical magnet manufacturing by-products. In 2024, Cyclic Materials opened a second commercial demonstration facility in Kingston, Ontario, dedicated to producing mixed rare earth oxide.

This latest funding round enables Cyclic Materials to accelerate its international growth and invest in rare earth recycling infrastructure in the U.S. and Europe. Compared to traditional mining, recycling REEs offers a scalable decarbonization solution and is a crucial step toward ensuring a sustainable and secure supply of these essential materials. This Series B raise marks a significant advancement in reducing our reliance on primary mining, enhancing resource security, and promoting the responsible use of REEs in our ever-evolving technological landscape.

Author: Matthew Stackhouse

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