Canadian startup firm Cyclic Materials will invest about US$20 million to open its first commercial rare earth element (REE) recycling facility, in Mesa, Ariz., with operations set to begin in early 2026.

The Kingston, Ont.-based cleantech company’s new site will use its proprietary MagCycle process to recover permanent magnets from end-of-life products. The plant is expected to process up to 25,000 tonnes of material each year and create more than 30 new jobs. Recruitment will start in the second quarter of 2025.

“We have chosen the vibrant Southwest for our first U.S. and global site to be close to feedstock that will support our mission to address the global supply-demand imbalance for rare earth materials,” said Ahmad Ghahreman, CEO and founder of Cyclic Materials. “By developing circular supply chains, we can reduce dependence on overseas sources and secure a more stable REE supply for the future.”

The investment follows a US$57 million series B funding round backed by investors including Microsoft, BMW iVentures, Hitachi Ventures, and Amazon’s Climate Pledge Fund.

Image: Cyclic Materials

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