REEx says rare earth recycling can't replace new supply chains

Rare Earth Exchanges says governments should not count on recycling alone to close the rare earth gap outside China. Its new rankings point to weak disclosure, uncertain feedstock and limited heavy rare earth recovery as the bigger bottlenecks.

Why it matters: - REEx says overreliance on recycling could extend dependence on China for rare earths used in electric vehicles, wind turbines and defense systems. - Counting planned recycling capacity as reliable supply could delay investment in mines, processing plants and magnet factories. - Government support should focus on projects that can recover dysprosium and terbium, two scarce heavy rare earths with strategic value.

What happened: - Rare Earth Exchanges released its inaugural recycling rankings for 28 companies and projects outside China. - The rankings found a sector with uncertain feedstock, limited production disclosure and heavy reliance on a small number of large projects. - John Parkinson, REEx co-founder and chief business officer, said recycling is not a substitute for building the rest of the supply chain. - Parkinson said announced capacity cannot keep a factory running if the material does not arrive.

The details: - Five of the 28 ranked entries are commercial producers, seven are under construction, commissioning or ramping up, and 16 remain in development, pilot, demonstration or research. - None of the five commercial entries has quantified annual recycling output recorded in the rankings. - REEx says that is a disclosure gap, not evidence of zero production. - Fifteen entries rely on memoranda of understanding or supply plans for feedstock. - Only five have REEx’s highest classification for durable, binding coverage of at least 80% of their requirements. - Collection costs, material quality and recovery rates still determine whether a plant can operate economically. - Attero and Evolution Metals & Technologies account for about 75% of quantified planned neodymium-praseodymium oxide-equivalent output. - The remaining planned output totals about 16,000 tonnes a year, with ReElement accounting for about 43% of that total. - REEx says these are planned estimates, not guaranteed output. - REEx points to Rare Earth Salts as an example of targeted recycling focused on terbium. - Rare Earth Salts says it produces and sells high-purity terbium from domestic recycled feedstock. - In September 2024, Rare Earth Salts received a $4.22 million Department of Defense award to develop and expand terbium oxide production from recycled fluorescent light bulbs. - Rare Earth Salts has not disclosed annual output, so its contribution cannot yet be quantified. - REEx argues that projects should prove feedstock composition, recovery rates, customer-ready products and disclosed output before receiving support.

Between the lines: - REEx’s ranking suggests the recycling story is still more promise than supply for most of the sector. - The sharpest near-term value may not be in bulk recycling volumes, but in recovering the hardest-to-source heavy rare earths. - REEx also warns that undisclosed magnet composition can make recovery estimates look better than they really are. - The message is that recycling can help, but it will not solve the supply chain gap on its own.

What's next: - REEx wants government funding tied to milestones such as verified feedstock, demonstrated recovery and products that meet customer specifications. - Rare-earth recycling should scale as collection improves and more products reach end of life. - Governments still need to accelerate new mined supply, separation capacity, metals production and magnet manufacturing. - REEx says future supply security depends on building the whole chain, not just expanding recycling.