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The start-ups seeking to challenge China’s stranglehold on rare minerals

by Investor News Today
February 11, 2025
in Commodities
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The start-ups seeking to challenge China’s stranglehold on rare minerals
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The digital waste piled up in a workshop at Birmingham college doesn’t appear like an apparent reply to a urgent financial and strategic downside. It sits in white sacks, every holding a tonne of fabric made up of shiny metallic triangles lower from the corners of outdated hard-disk drives.

Nonetheless, HyProMag, an organization based by workers on the college’s College of Metallurgy and Supplies, believes the “waste” could possibly be a invaluable and profitable supply of so-called uncommon earth minerals essential for the brand new, low-carbon power kinds that future economies are prone to demand.

Western international locations are eager to loosen China’s stranglehold on entry to the group of 17 minerals used to make sturdy and secure magnets to be used in wind generators, electrical automobiles and different functions. HyProMag’s know-how extracts the magnets containing uncommon earths, which make up 10-15 per cent of the burden of the hard-disk drives.

China controls about 90 per cent of world capability for processing the minerals, and has steadily tightened restrictions on exporting the materials and know-how wanted to course of them. It imposed new restrictions on exports to the US in late January in response to President Donald Trump’s tariffs on imports to the US from China.

President Trump, in the meantime, has made supply of rare earths from Ukraine a situation of continued US army assist for the nation.

“We will compete on the idea that we are able to entry uncooked materials sources inside embedded magnets which in any other case wouldn’t be recovered,” mentioned Allan Walton, founding director HyProMag. “So typically they find yourself in landfill.”

HyProMag was based in 2018 by Walton, professor of crucial and magnetic supplies, and his colleagues at Birmingham college. It was purchased by a unit of Canada-based Mkango Assets in 2023.

Rivals corresponding to Cyclic Supplies, a Toronto-based clear know-how start-up whose backers embrace Microsoft’s Local weather Innovation Fund, are additionally hoping that the Chinese language restrictions will improve alternatives to commercialise what remains to be a novel recycling approach.

Different corporations planning to develop rare earth recycling efforts embrace Belfast-based Ionic Applied sciences and Tokyo-listed Envipro.

Gavin Mudd, director of the government-backed UK Critical Minerals Intelligence Centre, mentioned international locations corresponding to Britain wanted to contemplate “the entire choices” to safe entry to crucial minerals.

Whereas the UK imports about 5,000-10,000 tonnes of uncommon earth magnets yearly in completed merchandise and elements, solely about 1 per cent are at present recycled, much like different industrialised nations.

“We have to take a look at future home manufacturing the place we are able to . . . [and also] take a look at recycling,” Mudd mentioned.

New plant at HyProMag
HyProMag intends to provide 25-30 tonnes a yr after it begins bigger scale manufacturing at a brand new plant in Tyseley, southern Birmingham © Charlie Bibby/FT

In the meantime, Ahmad Ghahreman, chief government of Cyclic Supplies, identified that magnets have been brittle and tended to be lined in coatings and have been typically glued in place. “This makes recovering magnets from end-of-life merchandise difficult,” he mentioned.

The important thing to HyProMag’s know-how is a cylindrical vessel put in a ground above the piles of waste. Employees load a rotating drum contained in the cylinder with as much as a tonne of waste then shut two hermetic doorways and pump the cylinder stuffed with pure hydrogen.

The hydrogen atoms enter tiny fissures within the magnets, inflicting them to shatter and separate from the encircling materials. Over the course of 4 to eight hours, a mud made up principally of magnet substances falls to the underside of the vessel, whereas components of different supplies corresponding to metal and aluminium principally keep within the drum.

Nick Mann, HyProMag’s managing director, mentioned the approach allowed the corporate to salvage magnet substances in “fairly a clear approach” with out the necessity for costly labour.

Cyclic Applied sciences’ approach used a “mechanical course of” to entry magnets in merchandise, earlier than separating out the person parts by immersing the magnets in chemical compounds, Ghahreman mentioned.

The 2 corporations are providing clients totally different finish merchandise.

With most sorts of waste, HyProMag takes the crumbled magnet materials — normally an alloy containing iron, boron and the rare-earth mineral neodymium — and sieves it to take away undesirable supplies corresponding to bits of nickel coating. It grinds the sieved materials in a mill to provide an alloy that may be turned again into a brand new magnet.

HyProMag says its strategy minimises the processing and power required for recycling in contrast with options. The corporate plans to recycle a spread of end-of-life merchandise, together with automobile motors, wind-turbine turbines and MRI scanner elements in addition to the hard-disk drive components.

A white sack holding a tonne of material made up of shiny metal triangles cut from the corners of old hard-disk drives at HyProMag
Shiny metallic triangles lower from the corners of outdated hard-disk drives which will likely be recycled for uncommon earths © Charlie Bibby/FT
A worker at HyProMag wearing a white coat
HyProMag says its strategy minimises the processing and power required for recycling in contrast with options © Charlie Bibby/FT

Ghahreman, in the meantime, insisted his firm’s strategy was superior to HyProMag’s “magnet to magnet” strategy as a result of it produced separated metals or ores, moderately than blended alloys. That allowed corporations to make use of the uncommon earths for functions apart from making magnets.

He in contrast the method to recycling a pizza.

“While you recycle pizza with our know-how, you go from pizza to flour, salt, pepper, all the opposite substances that we use,” Ghahreman mentioned. “With magnet-to-magnet know-how, you go from pizza to dough.”

HyProMag and Cyclic Applied sciences have each efficiently raised funds for capability expansions.

Cyclic Applied sciences intends to extend its manufacturing capability to 600 tonnes of uncommon earth oxides yearly by the top of this yr, from 100 tonnes in 2024. It additionally plans to open a US plant with a capability of 1,200 tonnes of uncommon earth oxides this yr and open crops in Canada and Europe by 2028.

“We’re bold in how a lot uncommon earths we wish to produce,” Ghahreman mentioned, including that the corporate’s strategies have been “price efficient”.

HyProMag intends to provide 25-30 tonnes a yr after it begins bigger scale manufacturing at a brand new, greater capability plant set to be accomplished within the second quarter of the yr in Tyseley, southern Birmingham.

Really useful

Molten rare earth elements being processed at the Rare Earth Processing Facility in Saskatoon, Saskatchewan

It expects capability at that plant and one other one being deliberate for Pforzheim, in Germany, to achieve an annual 350 tonnes of alloys for magnets, and can also be planning a plant at Fort Price, Texas, that might produce as much as 1,000 tonnes of alloys a yr.

Walton mentioned the corporate’s recycling efforts would have wider advantages as they may free economies the world over from “very centralised” manufacturing of uncommon earths in China.

“This know-how . . . is a approach of stripping out very giant portions of uncommon earths and making a home provide,” Walton mentioned.



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