The U.S.-launched trade war has certainly upended the manufacturing sector in Canada in recent months, that much is obvious to everyone. Now for some good news: a startup, backed by by Amazon and Microsoft no less, plans to build a rare earth recycling plant and research centre in Canada.
Cyclic Materials announced yesterday that it will invest $25 million to develop facilities in Kingston, Ontario.
Cyclic Materials' methodology
Cyclic Materials' technology allows for the recovery of rare earth elements contained in disused products, particularly wind turbines and hard drives from data centres. The company already has a testing facility in Kingston.
Demand for rare earths, used in all sorts of products from smartphones to electric vehicles, is skyrocketing globally. China is the world's largest producer of rare earths and has used its dominant position in the supply chain to retaliate against U.S. tariffs by limiting exports of those elements. We recently reported on the looming rare earth crisis.
That situation has prompted buyers to seek alternative supply sources. For Cyclic Materials, this is a golden opportunity:
“We are creating a new stream of supply for the most critical metals, a secure supply and local supply. Rare-earth elements are probably a $20 billion to $30 billion market globally, but they unlock multi-trillion dollars of industries.”
- Ahmad Ghahreman, Cyclic Materials CEO
The Kingston facility, which should begin operations in the first quarter of 2026, is designed to convert 500 tons of raw materials into a product containing essential components for magnets used in electric vehicle motors, wind turbines and consumer electronics.
The raw materials will come from a Cyclic Materials facility located in Arizona and a network of partners, the company stated.