Another step forward for Europe’s supply chains. Orano Group and CEA plan a large-scale implementation by late 2026.
A pilot facility for recycling rare-earth magnets has opened in Grenoble, France. The facility is operated by Orano Group, a domestic company specializing in the nuclear energy sector, and the French Alternative Energies and Atomic Energy Commission (CEA), a state research organization.
The process used is a so-called “short loop” method. This means that rare earths are recovered in metallic form from old magnets and directly reintegrated into new high-performance magnets, without first being converted into chemical intermediates. Test results from the pilot facility’s operations are expected by the end of 2026 and will pave the way for large-scale deployment.
The project receives funding from both France and the EU. It is part of the Magellan and Magnolia consortia, which bring together research and industry to advance rare earth recycling in Europe. Orano has stated that it aims to diversify its activities through recycling, leveraging its expertise in powder metallurgy and process industrialization.
EU Aims to Reduce Dependence on China Through Recycling
The processing of rare earths and their conversion into industrially critical permanent magnets is even more concentrated in China than the extraction of raw materials themselves. To reduce this heavy import dependency, the EU has made expanding recycling a key legislative priority.
Currently, the recycling rate for rare-earth magnets is only about one percent. According to the German Mineral Resources Agency (DERA), this is partly due to the low cost of Chinese primary products and the unpredictable availability of end-of-life magnets. Despite recycling technologies existing for years, industrial-scale magnet recycling in Europe is only now beginning to take shape. In May 2024, the largest such facility in eastern Germany, operated by technology company Heraeus in Bitterfeld-Wolfen, started production. In southern France, domestic company Caremag plans to establish a recycling and refining plant for rare earths by the end of next year. In addition, European research and pilot projects, as well as industrial collaborations, are focusing on expanding the circular economy.
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