CirculaREEconomy Project Launches to Boost UK Rare Earth Magnet Recycling CirculaREEconomy is a new UK project led by Ionic Technologies to create a fully circular, domestic supply chain for rare earth magnets used in EVs and green energy, reducing reliance on imported critical minerals through advanced recycling of end‑of‑life magnets and scrap. 🇬🇧🔄🧲 A new UK initiative, CirculaREEconomy, has officially launched to establish a sustainable, independent, and circular supply chain for Rare Earth Permanent Magnets (REPMs). The three-year programme brings together leading recyclers, manufacturers, and OEMs to develop advanced recycling technologies and foster strategic integration across the REPM value chain. Led by Ionic Technologies, the consortium includes key players across the UK supply chain: Ford Technologies Ltd, Bentley Motors Ltd, Wrightbus, European Metal Recycling, the British Geological Survey and Less Common Metals (LCM). Rare Earth Elements (REEs) are vital to the manufacture of permanent magnets used in electric motors and other high-efficiency components critical to the transition to net zero. However, global REE supply remains volatile and geopolitically concentrated, leaving industries vulnerable to disruption. While the UK has limited natural REE deposits, it boasts a strong base of manufacturers and end users reliant on these materials. CirculaREEconomy addresses this national challenge by focusing on recycling as the most viable and sustainable route to securing long-term REPM supply. The project will recover rare earth materials from end-of-life products and industrial scrap, reprocess them into high-purity feedstocks, and reintegrate them into the manufacturing cycle. This approach will reduce dependency on imported raw materials, retain value within the UK economy, and support the country’s electric vehicle and green energy ambitions. Aaron Riley, General Manager at LCM highlights the importance of collaboration: “CirculaREEconomy is a powerful demonstration of what can be achieved through industry-wide collaboration. By bringing together expertise from across the supply chain, from recycling to manufacturing, we are not only advancing sustainable rare earth magnet technologies but also strengthening the UK’s resilience in a strategically vital sector.” Manu Kaimanikal, Senior Developmental Metallurgist at LCM added: “The CirculaREEconomy project represents a pivotal advancement in the development of a sustainable, circular supply chain for critical materials, including rare earth elements used in permanent magnets, here in the UK. “By transforming high-purity recycled rare earth oxides into advanced alloy systems, we are enabling the production of high-specification magnets that meet the rigorous performance demands of the electric vehicle sector. We are proud to contribute our specialist metallurgical expertise to this vital effort.” CirculaREEconomy will run until 2028, with key milestones in materials recovery, refining, alloy development, and OEM validation. 🇬🇧 MAJOR NEWS: The UK Launches "Mine-to-Magnet" Revolution! ♻️🧲🚗 This project is part of the UK Department for Business and Trade’s £2.5 billion DRIVE35 programme, which supports the transition to zero-emission vehicle manufacturing. It is match-funded through a £5.5 million Collaborate grant awarded to the consortium by the Advanced Propulsion Centre UK, delivered in partnership with the Department for Business and Trade. 1. What is your position? How are you involved in the project? As the Senior Development Metallurgist at LCM, I focus on optimising alloy production from secondary rare earth oxide feedstock. My role involves process improvements to enhance efficiency and quality in rare earth metal production, ensuring that the alloys used in permanent magnets meet the stringent performance standards required for Ford’s E-Drive motor. 2. What is the primary goal of the project? Ionic Technologies, Less Common Metals (LCM), and Ford aim to establish a demonstration-scale circular supply chain for Rare Earth Elements (REEs) in the UK. This initiative will utilise innovative technologies to produce high-specification magnets for electric vehicles (EVs) using 100% recycled REEs. 3. What is LCM’s role in the project? LCM will conduct the metallisation process, converting rare earth oxides recovered from spent magnets by Ionic Technologies into high-purity rare earth metals such as neodymium-praseodymium (NdPr), terbium (Tb), and dysprosium (Dy). These metals will be strip cast into alloys that meet the specifications required for magnets and will then be supplied to a subcontracted magnet manufacturer. The resulting recycled permanent magnets will be integrated into Ford’s E-Drive motor system. 4. What are the technical challenges of creating high-specification magnets with 100% recycled REEs? Recycled REEs must achieve a purity of over 99.5% to ensure high-performance magnets, as even small contaminants can degrade their properties. One of the key challenges lies in material recovery efficiency, where achieving both high yield and purity in separation and refining, particularly in solvent extraction, remains complex. Consistency in alloy production is also critical, as variations in REE metal and alloy composition can directly impact magnet performance. Additionally, maintaining essential magnetic properties such as coercivity, remanence, and energy product is crucial to ensure recycled materials match or exceed the performance of virgin REEs. 4. How will the recycling process ensure that the magnets meet the performance standards required for electric vehicles (EVs)? The expertise of all project partners will be leveraged to monitor material purity and quality at every stage of the supply chain. Data from virgin materials will serve as a reference to benchmark the specifications of recycled materials and predict final product performance. Additionally, a closed-loop recycling system will be implemented, ensuring that any swarf or process waste generated is reintegrated, minimising material losses. 5. How will the project impact the supply chain resilience of rare earth materials in the UK and globally? This project will significantly enhance the resilience of the UK’s REE supply chain by reducing import dependency and establishing a domestic, circular supply chain. By securing a stable and localised source of recycled REEs, it mitigates risks associated with geopolitical uncertainties, while also reducing environmental impact. Additionally, the project supports the UK’s Net Zero target by ensuring a reliable and sustainable supply of REEs for the expanding electric vehicle (EV) and renewable energy sectors. Its success at the demonstration scale could serve as a catalyst for future investment in commercial-scale REE recycling facilities, further strengthening the UK’s supply chain independence and positioning it as a key player in the global REE supply network. 6. Are there plans to scale up the project beyond the demonstration phase, and what would this entail? Yes. The outcome of this project is intended to establish a foundation for the future expansion of the recycled REE supply chain model in the UK. WSP has recently completed a feasibility study for Ionic Technologies, focusing on designing a commercially viable production facility for rare earth oxides through permanent magnet recycling. In parallel, LCM has been commercially producing Nd, NdPr, Dy and Tb metals using molten salt electrolysis and metallothermic processes since 2017, meeting the requirements of the Western World. The proof-of-concept developed through this project could encourage magnet production companies to expand and invest in the UK, which currently lacks such investment. By fostering collaborations with end-users and OEMs, such as Ford, we can build a strong foundation for the recycled REE supply chain within the UK and the broader Western world. Additionally, government support will be crucial for commercial viability, as one of the main challenges within the supply chain is the need to remain cost-competitive. 7. How will the project address potential technical limitations in recycling REEs? The project addresses potential technical limitations in recycling REEs by employing several key strategies to ensure high-performance magnets. Ionic Technologies patented solvent separation method, using ionic liquid additives, enables efficient processing of individual REOs with fewer separation stages and reduced reagent consumption while maintaining high purity. LCM’s expertise in alloy production ensures that recycled REEs maintain consistent quality, meeting the stringent requirements for permanent magnets. To validate performance, recycled permanent magnets will undergo real-world testing in Ford’s EV motors, allowing for the identification and resolution of any performance gaps. Additionally, insights from the demonstration phase will drive process improvements, facilitating a smooth transition to commercial-scale production. If successful, this initiative will pave the way for larger-scale commercial recycling of REEs, strengthening domestic supply chains and reinforcing the UK’s position as a leader in sustainable magnet production. As advancements continue, collaboration between industry, government, and research institutions will be key to unlocking the full potential of recycled REEs in the global market. Ionic Technologies and LCM both visited Ford Halewood for a project review session as part of the UK CLIMATES funding. Ionic Technologies was also a core participant at the UK Department of Business and Trade Roundtable on Critical Minerals, supporting the development of the UK’s critical minerals strategy. During May and June 2025, Ionic Technologies participated in a Magnet Industrial Workshop with a number of German businesses in the magnet supply chain Backed under the UK’s £2.5bn DRIVE35 programme and an APC £5.5m grant, CirculaREEconomy aims to boost supply chain resilience, cut CO₂, and keep strategic critical mineral value and IP in the UK as demand for EVs and renewables accelerates. 🌍📈 🤝 The Dream Team: Powered by collaboration across the entire value chain: 🏭 Ionic Technologies (Lead & Recycling Tech) 🚘 Ford & Bentley Motors (OEM Validation) 🧪 Less Common Metals (Alloys & Metals) 🧲 VAC and GKN (Magnet Manufacturers) 🚌 Wrightbus (Commercial Transport) 🔄 EMR & British Geological Survey (Recovery & Lifecycle Analysis) 📈 The Solution: We are building a domestic circular economy. ✅ Recovering REEs from end-of-life magnets & scrap. ✅ Refining them into 99.5%+ pure oxides. ✅ Manufacturing high-spec recycled magnets for next-gen EVs. @IONIC_RE @IONICTECH_UK @timhorizonmet @IXR2THAMOON @ReElementTech @ucore @CyclicMaterials @MPMaterials @ReecycleInc @SolvayGroup @LCM_UK @EMRmetal #VIRIDION @EU_Commission @ENERGY @VulcanElements @RE_Exchanges @DiscoveryAler @ChrisMcDonaldMP @ussmetals @USRareEarths @DeptofWar @ENERGY #ATF #APC #NWF #UKEF #BBB #NetZero #EnergySecurity @Ford @BentleyMotors @Wright_bus #CirculaREEconomy #IonicTechnologies #IonicRareEarths #RareEarths #CriticalMinerals #MagnetRecycling #EV #ElectricVehicles #NetZero #GreenEnergy #UKIndustry #CircularEconomy #Sustainability #CleanTech #SupplyChain #Recycling #Innovation ♻️🚙🔋