India’s BatX and Germany’s Rocklink aim to strengthen their value chains, with commercial production planned within two years.
India is seeking to expand its high-tech sector while reducing its reliance on China, the country’s dominant supplier of critical raw materials. In a significant step toward this goal, the country’s first ecosystem for rare earth recycling and refining is set to take shape. BatX Energies Private Limited, an Indian recycling company, and Germany’s Rocklink GmbH have signed a Memorandum of Understanding (MoU) to collaborate on this effort.
The partnership aims to establish a scalable and sustainable recycling system for rare earth magnets, enhancing resource security not only for India but also for the European Union. Leveraging Rocklink’s take-back model, the companies plan to build a traceable collection network for end-of-life permanent magnets in India. They also intend to develop and commercialize solvent-extraction technologies to separate individual rare earth elements. A pilot plant is expected to be operational within one year, with full-scale commercial production targeted for completion within 24 months.
Building on an Existing Partnership
According to the companies, this new initiative builds on an existing collaboration that led to the creation of India’s first recycling cluster for lithium-ion batteries and permanent magnets in Uttar Pradesh. BatX and Rocklink are already collaborating under the EU-India Trade and Technology Council, established in 2023 to enhance cooperation on trade, critical technologies, sustainable energy, and resilient supply chains.
As geopolitical tensions rise and supply chain disruptions become more common, recycling is gaining global importance as a secondary source of critical raw materials. In the rare earth sector, however, recycling remains underdeveloped. According to Germany’s Federal Institute for Geosciences and Natural Resources (DERA), the global recycling rate for rare earths stands at only around one percent. Key challenges include competition from low-cost Chinese products and the unpredictable availability of recyclable magnet waste.
Policy initiatives, such as the EU’s Critical Raw Materials Act and India’s national resource mission, aim to address these barriers by creating more substantial incentives and support frameworks for recycling and circular economy practices.
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