Cyclic Materials Raises $71M CAD in Series B, Supported by Microsoft and Corporate Investors

Cyclic Materials, a Canadian startup founded in 2021, is leading the charge in addressing one of the most critical challenges facing modern industries: the sustainable recovery of rare earth elements (REEs). These elements, which include vital metals like neodymium, dysprosium, and cerium, are indispensable for a wide range of cutting-edge technologies, from electric vehicles to wind turbines and smartphones. However, their extraction and processing are both environmentally damaging and economically challenging due to the difficulty in locating concentrated deposits. As the global demand for these elements skyrockets, there is an urgent need for more sustainable methods of procuring them—methods that minimize environmental damage and support circular economies.

Cyclic Materials' innovative approach is centered around recycling rare earth elements from end-of-life products, offering a solution that could revolutionize the industry. The company's latest milestone, a $71-million CAD ($53-million USD) Series B funding round, marks a significant step forward in its mission to scale its rare earth recycling infrastructure across the United States and Europe. This latest round of investment brings the company’s total funding to $111 million CAD and demonstrates growing investor confidence in Cyclic Materials' ability to deliver on its bold vision.

Rare earth elements (REEs) are a group of 17 chemically similar metals that are critical for modern technological applications. These elements are "rare" not because they are scarce, but because they are often found in low concentrations and are difficult to extract in an economically viable way. For example, neodymium and dysprosium are essential in producing high-strength magnets used in electric vehicle motors, wind turbines, and consumer electronics. Cerium is used in catalytic converters, glass polishing, and other industrial applications.

As technology advances, the demand for REEs continues to grow. Electric vehicles (EVs) alone represent a huge demand source, as each EV motor requires significant quantities of rare earth magnets. Similarly, the renewable energy sector depends on REEs for wind turbine generators. Despite their critical role in these essential industries, recycling of REEs is not yet widespread. Much of the world’s supply comes from mining operations in countries like China, where environmental degradation and geopolitical concerns have prompted calls for more sustainable alternatives.

The process of extracting and refining REEs from the earth can have significant environmental consequences, including soil erosion, water contamination, and harmful emissions. As industries shift towards greener, more sustainable practices, finding ways to reduce reliance on virgin mining and to recycle REEs has become an urgent priority.

Cyclic Materials was founded with the goal of addressing these issues by creating a circular supply chain for rare earth elements. The company specializes in recovering REEs from end-of-life products like electric vehicle motors, wind turbines, MRI machines, and electronic waste from data centers. Rather than allowing these products to end up in landfills, Cyclic Materials’ innovative technologies enable the recovery of valuable metals, which can then be reintegrated into the manufacturing supply chain.

At the heart of Cyclic Materials’ approach is its proprietary two-stage recycling process. The first stage, called **MagCycle**, mechanically extracts magnets from magnet-bearing materials such as electronic motors, while also separating other valuable metals like copper, aluminum, and steel. This process is essential for efficiently recovering magnets from complex products where the magnets are embedded within other components.

Once the magnets are extracted, Cyclic Materials employs its second-stage technology, known as **REEPure**, to further refine the recovered materials. REEPure utilizes a chemical process to produce a **Mixed Rare Earth Oxide** (MREO), which is a crucial input for magnet production. This approach enables Cyclic Materials to recover rare earth elements in a form that is directly useful for manufacturing new products, thus creating a closed-loop supply chain for rare earth magnets.

With the completion of its $71-million CAD Series B funding round, Cyclic Materials is poised to expand its rare earth recycling infrastructure across the United States and Europe. This expansion is a key part of the company’s strategy to scale its impact and help re-establish North American and European leadership in the rare earths industry. Historically, the majority of rare earth processing and production has been concentrated in China, which controls a significant portion of the global supply chain for these critical materials. This dependence on a single source for REEs has raised concerns about supply chain security, especially given the geopolitical tensions between China and other major industrial powers.

Cyclic Materials’ technology offers a potential solution to this problem by providing a sustainable and scalable alternative to traditional rare earth mining. By recovering REEs from existing products and reintegrating them into the supply chain, Cyclic Materials can reduce the need for new mining operations while also mitigating the environmental impact associated with rare earth extraction.

The company's focus on building infrastructure in the United States and Europe is also aligned with broader policy initiatives aimed at reducing reliance on foreign sources of critical materials. In both regions, governments have announced strategies to secure domestic supplies of REEs and other critical minerals as part of their efforts to support the growth of green technologies like electric vehicles and renewable energy.

Cyclic Materials’ $71-million CAD Series B funding round was led by Toronto-based cleantech investor ArcTern Ventures and included a number of high-profile new investors such as BDC Capital’s Climate Tech Fund, Hitachi Ventures, Zero Infinity Partners, Climate Investment, and Microsoft’s Climate Innovation Fund. Existing investors such as Fifth Wall, BMW i Ventures, Energy Impact Partners, and Planetary Technologies also participated in the round. The fact that Cyclic Materials was able to attract such a diverse group of investors highlights the growing recognition of the company’s potential to make a significant impact in the rare earths industry.

This influx of capital will enable Cyclic Materials to further develop its technology and scale its operations. According to CEO and co-founder Ahmad Ghahreman, the company is focused on partnering with sustainability-focused infrastructure and corporate investors to maximize the impact of its recycling technology. The Series B financing will be instrumental in supporting Cyclic Materials’ expansion plans and advancing its mission to create a sustainable, circular economy for rare earth elements.

The company’s spokesperson has confirmed that all the funding from the round has closed, although the exact timeline has not been disclosed. With this new capital, Cyclic Materials is well-positioned to accelerate its growth and continue innovating in the field of rare earth recycling.

While Cyclic Materials has made significant progress in developing its rare earth recycling technology, there are still challenges ahead. One of the biggest hurdles is scaling the company’s operations to a level that can make a meaningful dent in the global demand for REEs. To date, rare earth recycling is not yet practiced on a commercial scale, and much of the world’s supply of these critical materials still comes from mining.

However, Cyclic Materials’ leadership is confident that their approach will be able to overcome these challenges. By working closely with investors, governments, and industry partners, the company aims to build the infrastructure necessary to support large-scale recycling of rare earth elements. Additionally, Cyclic Materials’ focus on innovation and technology development means that the company is well-positioned to continue improving its processes and increasing the efficiency of its recycling operations.

In the coming years, Cyclic Materials will likely play an increasingly important role in the global rare earths supply chain. As industries like electric vehicles and renewable energy continue to grow, the demand for REEs will only increase. Cyclic Materials’ technology offers a solution that not only meets this demand but does so in a way that is sustainable, scalable, and environmentally responsible.

Cyclic Materials is at the forefront of a new wave of innovation in the rare earths industry. By developing cutting-edge technologies that enable the recovery and recycling of rare earth elements from end-of-life products, the company is helping to create a more sustainable and secure supply chain for these critical materials. The recent $71-million CAD Series B funding round marks a significant milestone in Cyclic Materials’ journey, providing the capital needed to expand its operations and scale its impact.

As the world continues to shift towards greener technologies, the need for sustainable sources of rare earth elements will become even more critical. Cyclic Materials is well-positioned to meet this challenge, offering a solution that not only addresses the environmental concerns associated with rare earth mining but also supports the growing demand for these essential materials. Through its innovative recycling processes and commitment to sustainability, Cyclic Materials is helping to shape the future of the rare earths industry.