Cyclic Materials, a Toronto-based recycler of rare earth elements (REEs) and critical metals, has announced plans to open its first commercial facility in Mesa, Arizona. The company will invest over $20 million to launch the site, which will use its proprietary MagCycle™ process to separate rare earth permanent magnets from end-of-life materials. This facility marks a significant step in developing a domestic circular supply chain for rare earths in the United States.
Arizona to Become Hub for Rare Earth Recycling in the U.S.
Cyclic Materials is targeting the Southwestern U.S. due to its rich feedstock supply. The region generates an estimated 155,000 tons annually of end-of-life components, including e-scrap metals and parts from automotive systems. These materials often contain REEs, especially neodymium, dysprosium, and praseodymium, which are essential for permanent magnets.
According to CEO Ahmad Ghahreman, Cyclic’s goal is to reduce U.S. reliance on imported REEs, particularly from Asia. By recycling rare earths domestically, Cyclic supports supply chain resilience for key sectors like electric vehicles (EVs) and data centers. He stated that the company aims to begin commercial operations in early 2026.
Investment to Boost Clean Energy and Circular Economy in North America
The company will begin hiring for the Mesa facility in Q2 2025, with plans to create over 30 skilled jobs. Arizona Governor Katie Hobbs praised the project for creating sustainable employment and supporting the state’s clean energy goals. Similarly, Senator Mark Kelly emphasized that the project strengthens the U.S. supply chain and bolsters innovation in electric mobility and AI infrastructure.
Founded in 2021, Cyclic Materials raised $57 million in its Series B equity round. Backers include major global firms like Microsoft, BMW iVentures, Hitachi Ventures, and Amazon’s Climate Pledge Fund. This funding solidifies Cyclic’s position as a trusted partner in building sustainable, circular supply chains for critical materials.
Chris Camacho, CEO of the Greater Phoenix Economic Council, called the investment a major win for the region’s economy. He highlighted its alignment with Arizona’s strong presence in EV manufacturing and data infrastructure, both of which heavily rely on REEs.
As Cyclic expands its footprint across North America and Europe, the Mesa facility will serve as a blueprint for future sites. Through advanced metal recovery and recycling, the company aims to reshape how REEs are sourced, reducing waste and environmental impact while strengthening domestic production.
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