Cyclic Materials bets big on Arizona with $20m rare earth recycling facility set to transform U.S. clean tech

Find out how Cyclic Materials' $20M Arizona facility will transform rare earth recycling and reshape America’s clean energy supply chain.

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What is Cyclic Materials building in Mesa, Arizona—and why does it matter?

Cyclic Materials, a Toronto-based cleantech innovator, has officially committed over USD $20 million to establish its first commercial rare earth element (REE) recycling facility in the United States. Strategically located in , Arizona, this new site is poised to become a cornerstone in the creation of a circular supply chain for critical materials, especially rare earth permanent magnets. These magnets are vital components in electric vehicles, wind turbines, MRI machines, and data center infrastructure—sectors that are at the forefront of the global clean energy transition.

The company’s proprietary MagCycle technology allows for the cost-effective and sustainable separation of permanent magnets from end-of-life components. This process targets materials that previously remained underutilised in traditional recycling frameworks, marking a significant leap forward in sustainable resource management. The Mesa facility, expected to begin operations in early 2026, will process up to 25,000 tonnes of discarded components annually, including those derived from automotive and electronic scrap.

Cyclic Materials Invests $20M in First U.S. Rare Earth Recycling Facility in Mesa, Arizona
Cyclic Materials Invests $20M in First U.S. Rare Earth Recycling Facility in Mesa, Arizona. Image courtesy of Cyclic Materials.

Why is Mesa, Arizona the ideal location for this rare earth recycling facility?

Mesa’s selection as the site for this advanced operation is a calculated move grounded in logistics, supply access, and policy support. The Southwestern U.S. has been identified as a rich source of feedstock, with approximately 155,000 tonnes of applicable end-of-life materials generated each year. These include remnants from consumer electronics, electric vehicles, and other high-tech waste streams—exactly the types of materials Cyclic Materials aims to recover and repurpose.

Beyond supply chain access, the facility benefits from Arizona’s pro-innovation business environment and the state’s growing reputation as a clean tech hub. Cyclic Materials will join an expanding roster of sustainable manufacturing and energy-focused companies in the region, including electric vehicle manufacturers and hyperscale data centres. This geographical synergy further reinforces Arizona’s ambition to become a leader in green industrial transformation.

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How will Cyclic Materials contribute to the U.S. rare earth supply chain?

The urgency to build a domestic rare earth supply chain in the United States has intensified as industries reliant on these materials face increased geopolitical risks and supply uncertainties. China’s dominance in the REE market has long been a point of concern for Western economies, prompting a push to localise and diversify access to these critical inputs.

Cyclic Materials’ facility in Mesa will directly contribute to this objective by transforming domestic waste into high-value REE feedstock, thereby reducing dependence on imports. Through the commercialisation of its MagCycle and REEPure technologies, the company is not only scaling rare earth recovery but also ensuring these processes are environmentally sound and economically viable.

This development is particularly relevant to the automotive and electronics sectors. With demand for electric vehicles surging and the revolution fuelling new data centre construction, the need for resilient, domestic REE supply chains has never been more pronounced.

Who is backing this investment, and what does it mean for the future of circular economies?

Cyclic Materials’ expansion is backed by an impressive roster of strategic investors. Its Series B equity round, initially raising USD $53 million, grew to USD $57 million following additional support from high-profile backers such as ‘s Climate Innovation Fund, BMW iVentures, , ArcTern Ventures, Fifth Wall, Amazon’s Climate Pledge Fund, and InMotion Ventures.

This collective endorsement from both traditional industrial giants and climate-focused funds underscores growing investor confidence in circular economy solutions. Cyclic Materials’ ability to attract such institutional capital reflects its strategic importance in helping industries transition to more sustainable and localised material sourcing frameworks.

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By leveraging partnerships with global leaders such as Solvay, Vattenfall, VACUUMSCHMELZE, and Synetiq, the company continues to embed itself in the larger ecosystem of sustainable innovation. These collaborations also provide access to additional streams of recyclable materials, helping scale the circular economy beyond proof-of-concept.

What impact will this facility have on Arizona’s economy and workforce?

The Mesa facility is expected to create over 30 specialised jobs in its initial hiring phase, with recruitment commencing in Q2 2025. These roles will span engineering, operations, and supply chain management—fields that are crucial to maintaining high-quality, environmentally responsible manufacturing standards.

Local and state officials have been enthusiastic in their support, viewing the investment as a meaningful contribution to Arizona’s clean energy economy. Arizona Governor Katie Hobbs, Senator Mark Kelly, and other prominent public leaders have hailed the development as a forward-looking initiative that will enhance regional economic resilience while aligning with national sustainability goals.

According to Chris Camacho, CEO of the Greater Phoenix Economic Council, the project strengthens the region’s reputation as a magnet for advanced manufacturing and data infrastructure investment. By anchoring itself in Mesa, Cyclic Materials not only accelerates industrial innovation but also brings long-term benefits to local communities through workforce development and infrastructure enhancement.

How does this project reflect broader trends in clean tech and sustainability?

The rise of circular economy models marks a pivotal shift in how industries view resource efficiency. Where once end-of-life components were seen as waste, companies like Cyclic Materials now recognise them as strategic assets. The economic and environmental logic behind this approach is gaining traction as pressure mounts on governments and corporations to decarbonise operations and secure reliable, conflict-free supply chains.

Cyclic Materials’ entry into the U.S. market arrives at a time of growing alignment between industrial policy and clean tech innovation. Legislation such as the Inflation Reduction Act and the CHIPS and Science Act highlights the U.S. government’s focus on domestic sourcing, technology commercialisation, and green manufacturing. These frameworks create fertile ground for companies offering viable alternatives to overseas supply dependencies.

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The Mesa facility symbolises this alignment in action—where industrial ambition, environmental responsibility, and geopolitical foresight converge to reshape the future of resource use in America.

What lies ahead for Cyclic Materials and its global ambitions?

Having proven its technology with demo operations in Kingston, Ontario, and launched a second commercial site in 2024, Cyclic Materials is now preparing for a broader international rollout. The company’s goal is to establish additional facilities in Europe, replicating its North American model to meet global demand for sustainable rare earth elements.

As clean energy deployment accelerates worldwide, and nations race to secure materials essential to net-zero transitions, Cyclic Materials is well-positioned to play a central role. Its technological edge, investment momentum, and strategic partnerships suggest the company will be an enduring fixture in the clean tech landscape, shaping the next generation of material supply chains—circular, scalable, and sustainable.


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