First US rare earth recycling plant begins operations in Arizona

A new facility in Arizona starts processing critical tech materials from scrap, cutting US reliance on mining while advancing national security goals.

Cyclic Materials opened its first U.S. rare earth magnet recycling facility in Mesa, Arizona on a Wednesday in September 2026. The $20 million investment creates a plant that processes up to 25,000 metric tons of recycled scrap annually using proprietary MagCycle technology to separate magnets from steel. It began commercial operations with over 7,000 metric tons of scrap delivered and has generated more than 30 jobs. The facility accesses an estimated 155,000 tons of regional feedstock in the Southwest, while Cyclic Materials’ second U.S. facility in South Carolina—expected to create 90 jobs and operate by 2028—shows rapid expansion.

This recycling approach directly reduces the need for new mining of critical minerals. By converting existing scrap into Mag-Xtract, the facility avoids environmental damage from mining operations and cuts the U.S.’s dependency on imported rare earths. The Trump administration’s late July 2026 recognition of recoverable critical minerals as vital for national security aligns with this shift, positioning recycling as a strategic solution for both energy and security needs.

For abundance, this means critical tech materials become more available and cheaper for domestic manufacturing without increasing mining pressure. The facility’s scale reduces the environmental footprint of rare earth production while lowering costs for devices requiring these materials. However, operational capacity and feedstock claims remain based on Cyclic Materials’ figures, and the South Carolina facility’s 2028 timeline could shift. What matters now is whether this recycling model scales to meet growing demand without compromising environmental or security goals.

Source: Manufacturing Dive