Cyclic Materials and VACUUMSCHMELZE Deepen U.S. Partnership to Recycle Rare Earth Magnet Waste
Cyclic Materials, a pioneering recycling company dedicated to creating a circular supply chain for rare earth elements (REEs) and other critical materials, has announced an expansion of its partnership with VACUUMSCHMELZE (VAC), a global leader in magnetic materials and solutions. This strategic collaboration represents a significant step forward in advancing sustainable and localized production of high-performance magnets in North America.
Under the terms of the new agreement, the two companies have signed a 10-year exclusive deal for the recycling of 100 percent of magnet production byproducts, also known as swarf, generated at VAC’s forthcoming state-of-the-art manufacturing facility in Sumter, South Carolina. The facility, slated to begin operations by the end of 2025, will serve as a cornerstone for VAC’s efforts to modernize magnet production while integrating circular economy principles.
This expanded partnership builds upon the original 2024 agreement between the companies, which focused on efficiently recovering critical materials from high-performance permanent magnets. By extending and deepening this collaboration, Cyclic Materials and VAC are reinforcing their commitment to sustainable, localized, and secure supply chains for rare earth elements in North America.
Driving Circularity in Rare Earth Magnet Supply Chains
“At Cyclic Materials, our mission is to recover critical materials from permanent magnets and reintroduce them into the supply chain, reducing dependence on traditional mining and overseas sources,” said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. “With the extension of our partnership with VAC, we are accelerating our goal of establishing a North American circular supply chain for rare earth elements. VAC provides not only a steady and high-quality source of raw materials but also decades of expertise in magnet technology. Together, we are turning the vision of a circular economy into a practical reality.”
VAC produces neodymium-iron-boron (NdFeB) rare earth magnets, which are crucial for a wide range of applications across automotive, defense, industrial, and renewable energy sectors. These magnets are integral to electric vehicle motors, wind turbine generators, industrial machinery, and other technologies that power modern society. Through this extended agreement, VAC also strengthens its circularity strategy by incorporating the option to reintegrate recycled Mixed Rare Earth Oxides (rMREOs) sourced from Cyclic Materials directly back into its production processes.
“We are excited to expand our partnership with Cyclic Materials, reinforcing our commitment to circularity in critical materials essential to the energy transition,” said Dr. Erik Eschen, CEO of VACUUMSCHMELZE. “The addition of this agreement for our South Carolina facility enables us to localize the recovery and reintegration of REEs, creating a sustainable and high-purity feedstock for our high-performance magnets. By combining Cyclic Materials’ innovative recycling technologies with our advanced magnet manufacturing capabilities, we are ensuring that industrial demand for premium magnets can be met responsibly and efficiently.”
Investment and Strategic Backing
Cyclic Materials’ leadership in the recycling of rare earths and critical materials is supported by substantial financial backing. In 2024, the company raised $57 million in its Series B equity round, attracting investments from global industry leaders including Microsoft, Amazon, Hitachi Ventures, BMW i Ventures, and Jaguar Land Rover’s InMotion fund, alongside specialized sustainability-focused funds such as Energy Impact Partners, ArcTern Ventures, and Fifth Wall.
These investments position Cyclic Materials as a strategic partner for companies seeking sustainable and circular supply chain solutions, particularly in sectors such as automotive manufacturing and data center operations, where the demand for rare earth elements is both high and strategically critical.
Expanding U.S. Footprint
The partnership with VAC comes amid Cyclic Materials’ broader expansion into the United States. The company recently announced plans to open a recycling facility in Mesa, Arizona, reflecting its strategic commitment to establishing a localized, resilient, and sustainable supply chain for critical materials. This facility will complement Cyclic Materials’ North American operations, enabling the company to meet growing demand from industrial customers while reducing dependency on international sources.
Looking ahead, Cyclic Materials has plans to expand operations into Europe, aiming to replicate its North American circular supply chain model across other regions. By doing so, the company intends to accelerate the global adoption of recycled critical materials and support the energy transition through sustainable magnet production.
Advanced Recycling Technologies
Founded in 2021, Cyclic Materials has developed proprietary recycling technologies capable of economically recovering critical raw materials from a variety of sources. These include end-of-life electric vehicle motors, wind turbines, MRI machines, and electronic waste from data centers. The company’s processes focus on high-efficiency extraction while maintaining environmental sustainability, minimizing both energy use and waste generation.
Over the years, Cyclic Materials has built a network of strategic partnerships with major industry leaders such as Solvay, Vattenfall, Synetiq, and VACUUMSCHMELZE, enabling the company to recycle magnets containing rare earth elements and establish a truly circular supply chain. These collaborations not only enhance the recovery and reuse of materials but also foster innovation in magnet technology and critical material sourcing.
The Importance of Rare Earth Elements in Modern Industries
Rare earth elements, particularly neodymium, praseodymium, dysprosium, and terbium, are essential for the production of high-performance magnets. These magnets are used extensively in electric vehicles, wind energy, robotics, aerospace, and a wide range of industrial applications. However, the extraction and processing of REEs are traditionally resource-intensive, environmentally impactful, and heavily concentrated in a small number of countries. By developing localized recycling solutions, Cyclic Materials and VAC are helping to reduce supply chain risks and promote a sustainable approach to critical material sourcing.
The circular recovery of REEs not only mitigates environmental impact but also provides industries with a secure, high-purity, and reliable supply. With demand for electric vehicles, renewable energy infrastructure, and industrial automation rising rapidly, securing the materials necessary for magnet production is a strategic priority. The partnership between Cyclic Materials and VAC addresses this challenge head-on.
Building a Sustainable Magnet Supply Chain in North America
The new South Carolina facility represents a critical milestone for VAC’s North American operations. By producing high-performance magnets locally and recycling production byproducts through Cyclic Materials, VAC is not only enhancing operational efficiency but also contributing to the regional circular economy.
This approach aligns with broader industrial trends emphasizing sustainability, localization, and supply chain resilience. By reducing reliance on overseas sources for REEs, the partnership strengthens North America’s strategic autonomy in key industries such as electric vehicles, defense, and renewable energy.
As the demand for rare earth magnets continues to grow globally, Cyclic Materials and VAC are positioning themselves at the forefront of a sustainable materials revolution. The combination of advanced recycling technologies, strategic partnerships, and localized production ensures that high-performance magnets can be produced with minimal environmental impact while meeting industrial demand.
Ahmad Ghahreman summarized the partnership’s long-term vision: “Our collaboration with VAC represents a significant step toward creating a truly circular supply chain for rare earth elements in North America. Together, we are proving that critical materials can be recovered, recycled, and reintegrated into high-value applications, reducing dependence on traditional mining while supporting a sustainable industrial future.”
The expanded partnership between Cyclic Materials and VACUUMSCHMELZE underscores the growing importance of circular supply chains for critical materials in the 21st century. By combining cutting-edge recycling technologies, local production capabilities, and decades of expertise in rare earth magnet manufacturing, the two companies are pioneering a sustainable model for the future of high-performance magnets.
Through this collaboration, North America is taking meaningful steps toward environmentally responsible production, supply chain security, and industrial sustainability, providing a blueprint for the broader adoption of circular economy principles in critical material sectors worldwide. With operations set to begin at VAC’s Sumter facility by the end of 2025, the partnership is poised to make a tangible impact on the magnet industry, the automotive and energy sectors, and the global push toward sustainable industrial practices.
About Cyclic Materials
Cyclic Materials, founded in 2021, is a cleantech company building a circular supply chain for rare earth elements (REEs) and other critical materials essential to the clean energy transition. Its innovative technology transforms end-of-life products into valuable raw materials used in EVs, wind turbines, and electronics. In 2023, the company launched a commercial demo facility using its MagCycle℠ process to recover rare earth magnets.
In 2024, it opened a second facility in Kingston, Ontario, producing Mixed Rare Earth Oxide via its REEPure℠ hydrometallurgical process. With demand for REE-based magnets surging, Cyclic Materials is scaling globally across North America, Europe, and Asia. Mesa, Arizona, is its first U.S. location. In recognition of its pioneering work, it was named the #8 Most Innovative company in North America by Fast Company in 2025. Learn more at cyclicmaterials.earth.
About VACUUMSCHMELZE (VAC)
VACUUMSCHMELZE (VAC) is a leading global producer of advanced magnetic solutions, rare earth permanent magnets, and inductive components. With extensive application know-how and 100 years of experience in material science and product development, VAC designs and manufactures mission critical solutions for a wide variety of industries, including renewable energy, e-mobility, automotive, industrial automation, medical, aerospace.
VAC’s unique ability to develop and manufacture from base elements through final products enables us to provide customers optimal form factors and performance, generating best in class efficient solutions in an environmentally conscious manner. More information is available at www.vacuumschmelze.com. Vac is a portfolio company of Ara Partners, a global private equity and infrastructure firm that is decarbonizing the industrial economy. More information at www.vacuumschmelze.com.
About ARA Partners
ARA Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of June 30, 2025, Ara Partners had approximately $6.6 billion of assets under management.
