The partnership advances the development of Western supply chains for the energy transition.
German company Vacuumschmelze (VAC), one of the few producers of rare earth magnets outside of China, is partnering with Cyclic Materials, a Canadian start-up building a circular supply chain for critical raw materials. The agreement signed on Monday provides for recycling high-performance permanent magnets containing rare earths, which are important components for electric vehicles, wind turbines, and modern electronics. A process developed by Cyclic Materials will be used, while VAC will provide local sources of raw materials and decades of experience in rare earth magnet technology, according to the press release. The return of permanent magnets to the supply chain is an alternative to mining, said Ahmad Ghahreman, co-founder and CEO of the Canadian company, which will reduce the carbon footprint by 75 percent.
With this cooperation, the Western supply chains for critical raw materials continue to take shape. Just last week, South Korean companies Posco and Star Group announced the production of permanent magnets using raw materials from sources outside China, while the Canadian and Australian governments pledged funding for the construction of domestic rare earth facilities.
Photo: iStock/xiao zhou
