Rare earth recycler Cyclic Materials receives $2m from Jaguar Land Rover investment arm

Cyclic Materials, which aims to create a circular supply chain for rare earth elements (REEs), said on Thursday it has secured $2 million from InMotion Ventures, the investment arm of Jaguar Land Rover.

REEs are an essential component in permanent magnets, which are found in data centers, wind turbines, cell phones, electric vehicles, and used in military applications.

Less than 1% of REEs are currently recycled, while the global demand already exceeds supply and is projected to grow threefold by 2030, Cyclic Materials said.

The Ontario-based company said its proprietary MagCycle and REEPure technologies address this demand by recycling REEs from a wide range end-of-life products, establishing a circular supply chain for recycled mixed rare earths oxides.

“The investment highlights the surging importance of sustainable solutions in the automotive industry, Cyclic Materials CEO Ahmad Ghahreman said in a news release. “We are honored to have one of the UK’s most active corporate funds as partners as we deploy our rare earth recycling infrastructure across North America and Europe.”

The new investment lifts the company’s Series B round to $55 million. Cyclic Materials said it will use the funds to expand its operations across North America and Europe, enhance processing capabilities, and refine its recycling technologies.

This Series B extension builds on Cyclic Materials’ earlier $53 million round, backed by global industry leaders Microsoft, Hitachi, BMWi and specialized funds ArcTern and Fifth Wall.