Magnet Recycling Technology Aims to Expand US Capacity
CoTec Holdings is developing a process to bypass rare earth separation bottlenecks to strengthen the domestic magnet supply.
Updated on Oct. 26, 2026 in Materials Science
Live Poll
Should the US prioritize domestic magnet recycling to improve supply chain independence?
CoTec Holdings is developing magnet recycling technology designed to bypass rare earth separation bottlenecks and increase domestic supply capacity. This research-stage development relies on equity stakes in HyProMag USA to build a permanent magnet supply chain in the United States.
Why it matters
Scaling rare earth magnet production is a critical hurdle for the US supply chain, as current processes rely heavily on complex separation stages. Recycling provides a pathway to secure materials without requiring traditional mining and separation infrastructure.
The proposed recycling technology aims to bypass rare earth separation, a bottleneck that typically requires intensive chemical processing of mined ores. By recovering magnets directly, the process aims to increase domestic permanent magnet capacity compared to current supply chain limitations.
The players
CoTec Holdings
A Toronto-based developer of processing and recycling technologies focused on critical mineral supply chains.
HyProMag USA
A US-based magnet development firm, partially owned by CoTec Holdings, working on permanent magnet production.
The details
The recycling process utilizes methods that extract and reprocess rare earth elements from end-of-life magnets, effectively bypassing the primary ore separation bottleneck. CoTec Holdings maintains equity in HyProMag USA, a US-based magnet development firm, to integrate this capability into the American supply chain. This approach is currently in the research and development phase.
Timeline
October 26, 2026: Analysis of magnet recycling strategy published.
The Tech Race
The development of recycling technology marks a departure from the traditional reliance on the rare earth separation bottleneck. By establishing domestic recovery capabilities, the firm seeks to bypass the resource-intensive separation steps that have historically defined the global magnet supply chain.
This development is in the research stage and does not currently impact commercial magnet availability or pricing. Industry stakeholders and manufacturers of electric motors and electronic systems should monitor for future pilot-scale capacity benchmarks.
The takeaway
The move toward recycled rare earth magnets represents a shift in how domestic manufacturers may eventually source critical components. Readers should track future announcements from HyProMag USA regarding the scaling of their recycling throughput capabilities.
Further reading
For more on the efforts to secure critical components, visit the Materials Science section.
Source note: This article includes information reported by Metal.
Live Poll
Should the US prioritize domestic magnet recycling to improve supply chain independence?
