22-04-2025
US extracts rare earths from hard drives, strikes blow to China's dominance
With rare earth exports caught in the crossfire of rising U.S.–China tariffs, the global tech and defense industries are bracing for supply disruptions.
On April 4, China imposed new restrictions on seven critical rare earth elements and magnets, requiring export licenses and delaying outbound shipments.
The move came in direct response to U.S. tariffs of up to 145 percent and has shaken markets reliant on these strategic materials. The tariffs on China have since then shot up to an astonishing 245 percent.
More than half of the United States' supply of critical minerals currently comes from China.
Now, a domestic recycling initiative may offer a way out of this dependence by turning discarded data center hardware into a reliable, eco-friendly source of rare earths and valuable metals.
In a first-of-its-kind pilot, Western Digital, Microsoft, Critical Materials Recycling (CMR), and PedalPoint Recycling processed nearly 50,000 pounds of decommissioned hard drives and server hardware.
Using a new acid-free chemical method, the team extracted rare earth elements like Neodymium, Praseodymium, and Dysprosium, as well as high-purity gold, copper, aluminum, and steel.
The recycled materials are already feeding back into supply chains supporting electric vehicles, wind energy, and next-generation electronics.
At the heart of the process is acid-free dissolution recycling (ADR), a technology developed by the Critical Materials Innovation (CMI) Hub.
The pilot reached a 90 percent recovery rate for rare earths and base metals, along with 80 percent total material recovery by mass.
'This initiative sets a new standard for end-of-life data storage management,' said Jackie Jung, vice president of Global Operations Strategy and Corporate Sustainability at Western Digital.
'This project is more than a milestone. It's a model for sustainable progress in critical material recovery.'
The process also delivers major environmental gains. According to a life cycle analysis, it reduces greenhouse gas emissions by 95 percent compared to conventional mining and refining.
The pilot drew materials from Microsoft data centers across the U.S., underscoring its potential for scalability.
Chuck Graham, corporate vice president at Microsoft, said the results show it's possible to build an economically viable and sustainable system for handling decommissioned hard drives.
'It's an opportunity to reuse and recycle materials, cut waste, and reduce carbon impacts across our entire sector,' Graham said.
The implications stretch beyond corporate sustainability. By performing the entire rare earth oxide production process domestically, the program boosts national security while reducing exposure to volatile global markets.
With international trade policies becoming more unpredictable, securing a homegrown supply chain has become a top strategic priority for the U.S.
Tom Lograsso, director of the CMI Hub, praised the team's rapid development. 'Scaling ADR from lab bench to demonstration scale in just eight years is an incredible achievement,' he said.
With demand for hard drives climbing in tandem with AI and data storage growth, the potential to recover rare earths at scale offers a long-term solution for the U.S.
'This pilot shows what's possible when industry leaders collaborate,' said Brian Diesselhorst, CEO of PedalPoint Recycling. 'The impact could be massive.'
As geopolitical tensions rise, a domestic answer to rare earth supply may no longer be optional, it may be essential.
