Electronics recycler ERI and rare earth specialist Cyclic Materials have formed a partnership to extract rare earths and critical minerals from US e-waste streams. The agreement positions the companies to build one of America's largest commercial rare earth recycling operations.

The deal addresses a supply chain vulnerability for ERI and automakers alike. EV batteries and electric motors require rare earth elements like neodymium and dysprosium. Currently, the US depends almost entirely on imports, primarily from China, which controls roughly 70 percent of global rare earth processing capacity. This partnership creates a domestic alternative by diverting e-waste that would otherwise go to landfills or overseas processors.

ERI operates one of North America's largest electronics recycling networks, processing millions of units annually from computers, phones, and industrial equipment. Cyclic Materials brings proprietary technology to isolate and purify rare earths at commercial scale. Together, they access massive feedstock volumes while deploying technology proven in their Arizona operations.

The timing matters. EV production continues accelerating, and battery demand grows with it. A Tesla Model 3 motor requires roughly 1.5 kilograms of rare earth magnets. With EV sales projected to hit 40 percent of light-duty vehicles by 2030 in the US, sourcing pressure intensifies. Domestic recycling reduces reliance on geopolitical chokepoints and shortens supply chains.

The partnership also addresses economics. Mining primary rare earth deposits costs significantly more than extracting them from concentrated e-waste. Recycled material undercuts virgin ore pricing while requiring less energy and generating fewer environmental hazards.

This move fits broader industry trends. Automakers like Ford and General Motors increasingly demand traceability and domestic sourcing for critical materials. Regulators have flagged rare earth supply as national security infrastructure. Companies securing recycled supplies avoid tariff exposure and