Cyclic Materials Breaks Ground on $82 Million Rare Earth Recycling Hub in South Carolina
In a significant move to secure domestic sources of critical minerals, Cyclic Materials announced today an $82 million investment to establish a major rare earth element (REE) recycling campus in McBee, South Carolina. The facility represents a strategic push to reduce U.S. reliance on imported rare earths, which are vital for electric vehicles, defense systems, and renewable energy technologies.
The new campus will house the company's second U.S. "spoke" facility and its largest central "hub." Initial operations, slated for 2028, will focus on processing 2,000 tonnes per year of end-of-life magnet material using Cyclic's proprietary MagCycle and REEPure technologies. The goal is to recover mixed rare earth oxides (MREOs) from products that typically end up in landfills. This initial phase is projected to yield 600 tonnes of recycled MREOs annually, with plans to scale up to 6,000 tonnes of input material and 1,800 tonnes of output—enough rare earths to supply an estimated six million hybrid vehicle transmissions each year.
"Our mission is to close the loop on the magnet supply chain," said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. "By recovering these critical materials domestically, we can create a more resilient and sustainable North American supply chain, moving away from the environmental and geopolitical uncertainties of traditional mining."
The project is bolstered by a key ten-year partnership with German magnet manufacturer Vacuumschmelze (VAC). Under an agreement finalized last October, Cyclic will exclusively recycle all magnet production byproducts from VAC's new plant in Sumter, South Carolina. This synergy is poised to make South Carolina a pivotal center for rare earth magnet recycling and advanced manufacturing in the United States.
The development, expected to create over 90 skilled jobs, benefits from federal and state incentives. It follows Cyclic's June 2025 announcement of a $25 million recycling facility in Kingston, Ontario, underscoring a broader strategy to build a circular economy for critical minerals across North America. Analysts note that such recycling initiatives can provide new supplies of heavy rare earths—like dysprosium and terbium—much faster and with a lower environmental footprint than developing new mines.
Industry Voices
Maya Rodriguez, Supply Chain Analyst at GreenTech Advisors: "This is a pragmatic step toward supply chain security. Recycling won't replace mining overnight, but it diversifies our sources and builds crucial domestic expertise in material recovery. South Carolina is becoming an unexpected nexus for this industry."
David Chen, Founder of a EV Battery Startup: "As a manufacturer, seeing investment in domestic rare earth processing is a relief. It reduces our logistical risks and aligns with consumer demand for sustainably sourced components. This campus could be a model for other critical material sectors."
Frank Kellerman, Retired Mining Engineer & Blogger: "Let's not get carried away. Eighty-two million dollars and a few hundred tons of output is a drop in the bucket. The U.S. imports thousands of tons annually. This is greenwashing PR that distracts from the need for serious, large-scale domestic mining and processing policy. Recycling alone is a feel-good sideshow."
Dr. Lena Sharma, Materials Science Professor: "The technical collaboration with VAC is the most promising aspect. Integrating recycling directly with primary magnet production creates a truly circular industrial process. It's this kind of systemic thinking that leads to real material independence and environmental benefits."