Introduction
There is a major challenge that many industries are currently facing—that's about 90% of the global marketRare earth elementsThis is a dependency relationship with China, which dominates the economy. From wind power generation to electric vehicles, these "rare earth elements" are essential materials used in low-carbon energy technologies that support modern society.
However, the problem is that China is the only country in the world that continues to supply these raw materials, and has also restricted the export of the technology. In response, countries around the world are searching for new solutions. This time, we will explain in detail a groundbreaking technology that recovers rare earth elements from waste, which is attracting attention in the UK, Canada, and other countries. This article is easy to understand and recommended for anyone interested in business opportunities or environmental issues.
"Waste" is a treasure trove!
A thorough comparison of two groundbreaking recycling technologies.
The core of this theme is the discovery of a "treasure trove" hidden within the products we use every day. Magnets in hard drives and electric vehicle motors, for example, use rare earth elements, but they are simply discarded once the product reaches the end of its lifespan.
There are two companies that deserve attention here:
1. Hypermag(High Pro Mag)
This company was founded in 2018 by researchers from the University of Birmingham in the UK. Its distinctive technology lies in a groundbreaking method of pulverizing magnets using pure hydrogen gas. One ton of waste is packed into a rotating drum, sealed, and pure hydrogen is introduced. The hydrogen atoms penetrate the delicate cracks in the magnet. As a result, the magnet is pulverized within eight hours, and only the raw materials fall to the bottom of the container.
2. Cyclic Materials
This is a new company from Canada that is receiving support from companies like Microsoft. They employ a method that involves "extracting magnets from the product using a mechanical process, and then immersing them in chemicals to separate each element."
The famous analogy of "pizza recycling"
Cyclic MaterialsCEO Garleman explains the difference clearly. He likens Hypermag's approach to "making only pizza dough from a pizza," while his company "extracts all the basic ingredients from a pizza, such as flour, salt, and cheese." In other words, it's the difference between being able to make only magnets from magnets, or obtaining materials that can be used in a wider variety of products.
Why is this technology necessary?
Cabin Madd, director of the Centre for Critical Minerals Intelligence (CMIC), a UK government agency, says "we need to consider 'all options' to secure critical minerals." Currently, the UK imports approximately 5,000 to 10,000 tons of rare earth magnets annually in finished products and components, but only about 11 TP3T is currently recycled. Other developed countries are in a similar situation.
Latest information on specific business opportunities and production plans
Let's look at some specific figures. Both companies are making significant investments in the future.
Hypermag's expansion plans
- Kreisly aims to produce 250,000 tons per year at its new plant (to be completed in spring 2025).
- The company plans to produce a total of 350 tons of magnetic material per year at its factory in Pforzheim, Germany.
- A plan is still under consideration for producing 1,000 tons per year in Texas, USA.
The company is expected to have an overall production capacity of 4.1 million tons per year. Co-founder Alan Walton said, "This recycling business could liberate the global economy from the 'highly centralized' rare earth production in China and bring far-reaching benefits."
Cyclic Materials' ambitious goals
- We aim to expand our annual production from 100 tons in 2024 to 600 tons by the end of 2025.
- A US factory with a final production capacity of 1,200 tons is scheduled to open later this year.
- There are also plans to build factories in Canada and Europe by 2028.
CEO Garleman acknowledges that they have "very ambitious goals," but also states that their methods are excellent because they are "highly cost-effective."
This technology is key to changing business.
- Breaking free from dependence on China: Reducing the impact of import tariffs and regulations
- Building new supply chains: Increasing value as a domestic supply source.
- Reducing environmental impact: Contributing to both waste treatment and resource recovery.
US President Donald Trump has indicated he may impose further export restrictions on China following the imposition of import tariffs on Chinese goods. Meanwhile, Ukraine has also demanded the supply of rare earth elements from the US as a condition for continued military support. These geopolitical circumstances are further increasing the demand for recycling technologies.
Understanding technical terms and supplementary information will sharpen your business decisions.
Let's touch on some slightly more technical details here, but this information will be helpful to our readers.
What are "rare earth elements"?
Although it is a collective term for 17 elements, as the name "rare earth elements" suggests, they are not rare in the Earth's crust, and are actually said to be present in amounts about 50 times greater than iron ore. However, because they are difficult to separate and refine, they are a valuable resource for practical purposes.
Main uses and regional circumstances
- Wind turbines: Essential for powerful and stable magnets
- Electric vehicle motors: essential for efficient driving.
- Mobile phones and speakers: Used as small but powerful magnets
China controls approximately 901 TP3T of the world's rare earth refining capacity and has consistently restricted the export of its technology. However, the situation has recently changed, and Western countries are working hard to "loosen" those restrictions.
Differences and advantages of the two companies' approaches
- Hypermag: Its advantage lies in the fact that it requires fewer processing steps and less energy.
- Cyclical Materials: Since separated metals and ores are obtained, they can be used for applications other than magnets.
Cyclical CEO Gerleman points out that "magnets are fragile, often coated and glued in place," and that "extracting magnets from discarded products is not easy." However, the types of final products that the two companies offer to their customers are different. Hypermag "pulverizes and extracts material from magnets" to produce a renewable mixture, while Cyclical provides it in a separated state.
Industry-wide trends
Cabin Mud, head of the UK government, said, "We need to look ahead to domestic production and recycling wherever possible in the future." The Centre for Critical Minerals Intelligence has also indicated that it will consider "all options." This is seen not merely as technological development, but as a national strategic initiative.
Summary
It's important to recognize that the electronic devices and products we use every day actually contain treasures that are being discarded as "landfills." The groundbreaking technologies established by companies like Hypermag and Cyclical Materials are not just about environmental protection, but also represent business opportunities. They open up the possibility of building new supply chains while avoiding the risks of over-reliance on China.
The idea of "extracting resources from waste" is extremely important in our work. We should always strive to find value in "garbage." Also, let's remember that "technological innovation" can solve geopolitical problems.
There is still much room for development in this field. While the goals of both companies are ambitious, if achieved, they could have a significant impact on the global economy. If you are interested in business or environmental issues, gaining a deep understanding of these recycling technologies will be a valuable asset in your future career.
The current situation, where Western countries are exploring "all options" to address the challenge of dependence on China, is highly insightful for investors and business leaders. Those seeking to build sustainable business models should pay close attention to this type of innovation.
If more companies strive to balance technological innovation and environmental protection, the world will move in a better direction. By widely accepting recycling technologies that can "return pizza to its basic ingredients," we can contribute to the realization of a circular economy.
Why not pay attention to the latest trends in this field and incorporate them into your business strategy?
