Cyclic Materials, the advanced recycling company creating a circular supply chain for rare earth elements (REEs) and other critical materials, today announced an expansion of its partnership with VACUUMSCHMELZE (VAC), a leading developer of magnetic materials and solutions.
The companies have signed a 10-year exclusive agreement for recycling 100 percent of the magnet production byproducts (i.e. swarf) that will be produced at VAC’s impressive new manufacturing facility in Sumter, South Carolina scheduled to begin operations at the end of 2025. This extended partnership builds on the 2024 agreement between both companies that ensures efficient recycling of critical materials used in high-performance permanent magnets.
“At Cyclic Materials, our mission is to recover critical materials from permanent magnets that can be put back into the magnet supply chain to reduce the reliance on traditional mining methods and overseas sources,” said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. “With the extension of our partnership with VAC, we’re collectively building more momentum towards our goal of building a North American supply chain. VAC brings not only a reliable source of raw materials for extraction but also decades of expertise in rare earth magnet technology. Together we are making the circular economy a reality.”
VAC produces neodymium-iron-boron (NdFeB) rare earth magnets, which are essential to automotive, defense, industrial and renewable energy applications. Through this extended agreement, VAC also strengthens its commitment to circularity with the option to reintegrate recycled Mixed Rare Earth Oxides (rMREOs) from Cyclic Materials into its own production processes.
“We are pleased to expand our partnership with Cyclic Materials to further support the circular economy for critical materials essential to the energy transition,” said Dr. Erik Eschen, CEO of VACUUMSCHMELZE. “The addition of this new contract for our South Carolina facility strengthens our ability to localize the recovery and reintegration of REEs back into our production. By continuing to leverage Cyclic Materials’ innovative recycling processes alongside our advanced magnet manufacturing, we are collectively ensuring a sustainable and high-purity feedstock for high performance magnets to meet current and future industrial demand.”
Cyclic Materials raised $57 million in its Series B equity round last year, backed by global industry leaders like Microsoft, Amazon, Hitachi Ventures, BMW i Ventures, Jaguar Land Rover’s lnMotion fund, and specialized funds such as Energy Impact Partners, ArcTern Ventures and Fifth Wall. Together, these investments position Cyclic Materials as a key partner for companies seeking sustainable and circular supply chain solutions, particularly in the automotive and data center industries.
The company recently announced its move into the U.S. with its plans to open a facility in Mesa, Arizona, which underscores the critical role Cyclic Materials plays in advancing sustainable supply chains as it expands its footprint across North America with plans to establish operations into Europe in the future.
Established in 2021, Cyclic Materials’ proprietary technologies are capable of economically and sustainably recovering critical raw materials from end-of-life electric vehicle motors, wind turbines, MRI machines, and data center electronic waste. Over the years, the company has forged strategic partnerships with key industry leaders such as Solvay, Vattenfall, Synetiq, and VACUUMSCHMELZE to recycle magnets containing REEs and establish a circular supply chain.
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