Amazon and Microsoft-backed startup to build Recycling Plant of rare earths in Canada, the 'rare minerals' that analysts say gives China upper hand in trade war with the US
Cyclic Materials
, a startup supported by Amazon, Microsoft, and BMW Group, plans to invest $25 million in a rare-earths recycling plant and research center in Ontario, Canada, according to a statement reported by Bloomberg. The facility, set to begin operations in the first quarter of 2026, aims to bolster North America's supply of critical minerals amid rising global demand and China's dominance over rare-earth markets.
Cyclic's technology extracts rare earths from end-of-life products like wind turbines, data-center hard drives, and electric vehicle components, addressing supply chain vulnerabilities highlighted by China's export restrictions in retaliation to U.S. tariffs, Bloomberg noted. The company already operates a demonstration facility in Kingston and a processing site in Arizona.
What is the rare earth minerals tussle between US and China
The rare earth minerals issue between the U.S. and China centers on a trade dispute over critical minerals essential for advanced technologies, including defense systems, electric vehicles, semiconductors, and renewable energy. China mines about 70% of the world's rare earth elements (17 metallic elements with unique properties) and processes over 90%, giving it significant control over global supply chains. They also produce 85% of rare earth magnets used in electric motors and other tech.
'Rare-earth elements are a $20 billion to $30 billion market globally, but they unlock multi-trillion-dollar industries,' Ahmad Ghahreman, CEO of Cyclic Materials, told Bloomberg. 'We are creating a secure, local supply for these critical metals.' The Kingston plant is designed to process 500 metric tons of feedstock annually, producing rare-earth oxides for magnets used in EV motors, wind turbines, and consumer electronics. Feedstock will be sourced from Cyclic's Arizona facility and a network of partners, with output supplied to companies like Solvay SA.
The project aligns with Canada's push to become a hub for critical minerals, supported by government incentives and growing interest from automakers and tech giants. Cyclic's initiative could reduce reliance on Chinese rare earths, which account for over 80% of global supply, per Bloomberg. The research center will also develop advanced recycling techniques, positioning Cyclic to meet surging demand for sustainable mineral sources in industries critical to the green energy transition.
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'Willing to enhance dialogue': China on lifting export curbs on rare earth metals to India
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Time of India
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Time of India
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Squeezed for supplies, automakers have made a three-pronged suggestion to improve supplies of rare earth magnets over the next three years to reduce dependence on China. The Indian auto industry made a presentation to the ministry of heavy industries last week detailing strategies to attain self-sufficiency in supply chains . It suggested incentives for Indian companies to start local assembly of rare earth magnets, recycling of used magnets and outreach to resource-rich countries such as Australia, Vietnam, Chile, and Peru to secure supplies. Over a longer 3-10 years phase, they have proposed incentives to be introduced for large industrial players to set up manufacturing units for rare earth magnets with backward integration for raw material. Auto parts makers are likely to run out of stock of rare earth magnets early next month, which is likely to affect production of about a dozen critical components that go into electric vehicle motors as well as vehicle speed detection and automatic gear shifting systems. China announced export controls on medium and heavy rare earth-related items with a view to 'safeguarding national security' on April 4 in response to US President Donald Trump's tariffs. China accounts for about 70% of global rare earth metals mining and nearly 90% of production. 'The goal should be to ensure that India develops not only downstream capabilities but also upstream processing infrastructure', automakers said in the presentation, a copy of which was reviewed by ET. 'Financial and policy support must be provided to encourage public private partnership,' to build a complete domestic value chain, it said. This would include incentives for encouraging local mining and production of heavy rare earth magnets. However, till the time local mining, ore magnet production arrangements are done, the government must undertake measures to arrange for import from non-China based sources like Vietnam, Brazil, Russia, among others. In the near-term, though, the industry has said that the Indian government engages with counterparts in Beijing to relax export restrictions and help in expediting export control licenses so that automobile production in the country is not disrupted. 'While those making electric vehicles will be particularly impacted, the restriction eventually will affect all companies as these magnets are used in several key components including in electric power steering, parts for engine cooling and sensing exhaust gas concentration, engine spark ignition, among others,' said a senior industry executive on condition of anonymity, While some parts makers in Europe recently got approvals to source rare earth magnets, their Indian arms are yet to get a go-ahead from the Chinese ministry of commerce. The issue is complicated by the tense business and political relationship between India and China, experts said. As many as 35 Indian component makers import rare earth magnets from China. In its latest report CareEdge Ratings said delays in rare earth elements (REE) shipments for Indian auto OEMs may impact electric, Internal Combustion Engine (ICE) and hybrid vehicle production starting July 2025, particularly higher-end models that depend on REE-based technologies. 'Automakers might need to shift focus to mid-range or base models to address supply disruption. However, China's recent decision to temporarily allow REE exports to top US automakers offers hope for resolving the impasse for Indian companies as well', the ratings agency said in a note Thursday.
