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Rare Earth Recycling

Information only, not investment advice. This guide explains how the rare earth industry works; it does not recommend any company or security.

By REE Stocks. Sources checked Oct 13, 2026.

Rare earth recycling is the recovery of rare earths, mostly from permanent magnets, so they can be used again instead of being mined. Very little happens today: in the European Union, recycled end-of-life material meets only about 1% of rare earth demand. Most recycled supply comes from factory scrap, not from old phones or cars.

Recycling comes up often in rare earth news because it's one of the few ways outside China to add supply without a new mine. Whether it makes a real dent depends on collecting far more used magnets than anyone does today.

How much rare earth material is recycled today?

Only a tiny share of rare earths are recycled from used products. The European Commission's 2023 critical raw materials study puts the end-of-life recycling input rate at 1% for both light and heavy rare earths. In the United States, only limited quantities were recovered from batteries, magnets and fluorescent lamps, according to the USGS.

Most of today's recycled material is manufacturing scrap. The International Energy Agency says most recycling feedstock comes from losses during magnet making, and that this scrap, called swarf, is about 90% of today's secondary supply. A small magnet recycling industry is already running in China, producing about 25,000 tonnes, mostly from swarf.

Why is so little recycled?

Little is recycled because used magnets are hard to collect and hard to get out. In electronics, the IEA notes, the magnets are generally small and embedded in complex objects. It estimates collection rates for used rare earth magnets at around 5% or lower.

Size varies enormously. An electric car motor typically holds about 1 kg of magnets, the IEA says, while a wind turbine can hold up to 2 tonnes, and a phone speaker magnet weighs only milligrams. Big magnets are worth chasing; tiny ones usually aren't.

Cost is the other problem. Recyclers have to compete with mined supply, and the IEA stresses they need big cost cuts to stay competitive. In July 2024, it notes, NdPr in magnet scrap was quoted at about 10% above refined NdPr oxide. Our guide What Is NdPr Oxide? explains why that metal sets the price.

What can be recycled?

Permanent magnets are the main target, because they hold the most valuable rare earths. The IEA lists magnets from electric vehicle motors, wind turbines, electronics, medical imaging machines and, historically, hard drives. Rare earths can also be recovered from fluorescent lamps and some batteries, where cerium and lanthanum are common.

The value is in the magnet metals: neodymium, praseodymium, dysprosium and terbium. Our guide Rare Earth Magnets Explained covers what's inside a magnet and why those elements matter.

How are rare earth magnets recycled?

Magnets are recycled in two broad ways, which the IEA calls long loop and short loop. Long-loop recycling dissolves the scrap and takes it back to rare earth oxides, which then go through separation again like newly mined material. Our guide How Rare Earths Are Processed explains that separation step.

Short-loop, or magnet-to-magnet, recycling turns old magnets straight back into reusable alloy powder, often using hydrogen to break the magnet apart. It skips the separation step entirely. Other methods skip taking motors apart at all; the IEA cites a heat-based process developed by Nissan and Waseda University for electric vehicle motors.

Cleaner chemistry is also in development. Ames National Laboratory, a US Department of Energy lab, developed a process that dissolves magnets in a water-based solution rather than acid. It was licensed for commercial use in 2022 to recover rare earths from shredded hard drives.

How much could recycling supply in future?

The IEA projects that recycling could reduce the need for newly mined magnet rare earths by over 25% in 2035 and over 30% in 2050, under today's policy settings. With stronger climate policies, its scenarios reach 35% to 40% by 2050.

That's a big contribution, but it's decades away and depends on collecting far more used magnets. The IEA counts announced recycling projects adding up to about 7% of demand in 2026. For the next decade at least, new mines and separation plants will still supply most rare earths outside China.

What are governments doing about rare earth recycling?

The European Union has set the clearest target. Its Critical Raw Materials Act aims for at least 25% of the EU's annual consumption of strategic raw materials to come from recycling, and sets requirements on recyclability and recycled content for permanent magnets.

In the United States, the Department of Energy funds recycling research through its national labs, including the Ames work above. For investors, recycling companies are worth watching as a source of supply outside China, though many are private or at an early stage. Listed rare earth companies are on our rare earth stocks list, and What Are Rare Earth Elements? covers the basics.

Rare Earth Recycling: frequently asked questions

How much rare earth material is recycled?

Very little from used products. In the European Union, only about 1% of rare earth demand is met by recycled end-of-life material, according to the European Commission's 2023 critical raw materials study. Most of what is recycled today is factory scrap, not old devices.

Why are rare earth magnets so rarely recycled?

The magnets in most electronics are small and built deep into complex products, which makes them hard to collect and remove. The IEA estimates collection rates for used rare earth magnets at around 5% or lower. Recycled material also has to compete on price with newly mined supply.

Where does recycled rare earth material come from?

Mostly from manufacturing scrap, called swarf, which the IEA says makes up about 90% of today's recycled supply. Used magnets from electric car motors, wind turbines, hard drives and electronics are the other main source, along with fluorescent lamps and some batteries.

How much could recycling supply in the future?

The IEA projects that, under current policies, recycling could reduce the need for newly mined magnet rare earths by over 25% in 2035 and over 30% in 2050. That depends on far more used magnets being collected than today.

Does the EU have a recycling target for rare earths?

Yes. The EU Critical Raw Materials Act sets a goal for at least 25% of the EU's annual consumption of strategic raw materials to come from recycling. It also sets requirements on the recyclability and recycled content of permanent magnets.