Metals recycler Cyclic Materials plans to extend its reach in the U.S. and Europe while boosting its Canadian research footprint with proceeds of a $75-million equity round (all figures US), the largest to date for the Toronto-based company.

Announced Friday, the oversubscribed Series C round was led by accounts advised by T. Rowe Price Associates Inc., with support from existing shareholders and the Canada Growth Fund. The Globe and Mail reported the Canada Growth Fund contributed $25 million.

The company has developed processes to extract rare earth elements and metals such as copper and aluminum from the magnets inside electronics.

The recycled rare earth elements can be reused to manufacture high-performance magnets critical in the production of electric vehicle motors, wind turbines and consumer electronics. The metals are crucial in all manner of sectors and industries, including manufacturing and electronics.

Cyclic says compared to traditional mining, its recycling process cuts carbon emissions by over 60 per cent and water use by over 90 per cent. It also claims its facilities can be deployed much quicker than mining projects.

“With this new capital, we can rapidly deploy rare earths recycling infrastructure where it’s needed most, delivering local, secure supply at a pace traditional mining simply cannot match,” Ahmad Ghahreman, CEO and founder of Cyclic, said in the announcement.

Cyclic's processing capacity

Cyclic will focus on commercial-scale projects with the fundraise. The company’s infrastructure is geared toward providing the critical minerals needed for data centres, the defence industry and robotics.

Last year, Cyclic unveiled Mesa, Ariz. as the city for its first commercial-scale facility. The approximately 150,000-square-foot facility is where Cyclic plans to shred 25,000 tonnes of electronics per year to recover steel, aluminum, copper and a mixed magnet material containing four rare earth elements. It then expects to process 500 tonnes of the mixed magnet material at its site in Kingston, Ont.

Cyclic plans to start operations this year. The company has established a network of over 1,500 feedstock producers, Kunal Phalpher, senior vice-president of corporate development at Cyclic, told Sustainable Biz Canada in an email exchange.

The company has signed agreements with Renercycle, VACUUMSCHMELZE and Lime to recycle wind turbines, magnet production by-products and batteries from retired electric motors in e-bikes and e-scooters, respectively.

Phalpher would not disclose details about the company’s strategy for Europe or the U.S., such as locations for potential sites or timelines.

Research to propel global expansion

Another aim with the latest fundraise is to support research and development at its Centre of Excellence in Kingston. The 140,000-square-foot building is where Cyclic plans to install a commercial-scale magnet recycling unit, plus laboratories for rare earth metals recycling.

The research will focus on improving Cyclic’s process efficiency, Phalpher said, by “optimizing performance, managing feedstock variability, and increasing recovery rates while reducing energy use and operating costs.”

By doing so, Cyclic will be better prepared to deploy its technologies across the world, he added.

Cyclic announced it had struck partnerships with Queen’s University, Kingston Process Metallurgy, RXN Hub and Impact Chemistry for the research.

Cyclic has now raised $162 million in equity to date. It raised $53 million in 2024, also to support expansion to the U.S. and Europe.