Cyclic Materials Opens $20M Rare Earth Recycling Plant

Cyclic Materials has opened a $20 million facility in Mesa, Arizona, to recycle rare earth magnets from industrial scrap. The plant can process up to 25,000 metric tons of material per year and has already received over 7,000 metric tons of feedstock.

William Kimmitt, undersecretary of the Commerce Department's International Trade Administration, spoke at the Wednesday opening. He stated that decades of reliance on foreign materials have left the U.S. Vulnerable to supply disruptions from China and other nations. "You can't expect to lead in the technologies of tomorrow without reliable access to the foundational materials that make those technologies possible," Kimmitt said.

The Trump administration recently added recoverable critical minerals to the Defense Production Act, prioritizing them for national security. Kimmitt argued this policy leads to stronger supply chains, more material for American manufacturers, and reduced dependence on foreign production.

Facility Operations and Technology

The 144,000-square-foot Mesa plant uses proprietary MagCycle technology. Matt Cherevaty, Cyclic Materials' COO, explained the automated system mechanically separates magnets from steel to produce a material called Mag-Xtract. This magnet material is then shipped to chemical facilities for refining into rare earth oxides.

Cyclic Materials executives call this their largest magnet recycling operation by annual processing capacity. The company selected Mesa for its location near a growing hub of automotive, semiconductor, electronics, and data center manufacturers. Access to talent and transportation links for moving materials were also key factors.

Supply Chain and Expansion Strategy

The company states its U.S. Expansion is quickly closing gaps in the domestic supply chain for critical minerals. CEO Ahmad Ghahreman said this infrastructure development could shave months or years off the delivery of materials needed for AI, energy, and defense sectors.

Cyclic Materials is building a second, larger U.S. Facility in McBee, South Carolina. The company has invested over $82 million in that project, which will both recover magnets and refine rare earths on-site. It broke ground earlier this year and is slated to create 90 jobs when ready in 2028.

Project Scale and Regional Impact

The Mesa project created more than 30 jobs, with the first shipments of recovered material expected before the end of the month. Cherevaty estimated there is roughly 155,000 tons of available regional feedstock across the Southwest to supply the plant.

This Arizona facility is Cyclic Materials' first in the United States. The Toronto-based company previously opened a plant in Kingston, Ontario, in 2025. Growth.