BMW’s investment arm, BMW i Ventures, has recently announced its investment in Cyclic Materials, a Canadian company that specializes in recycling rare earth elements (REE). The company has established partnerships with internationally recognized companies, including Polestar, a Swedish car brand under Geely, to recycle magnets for electric motors.
Together with Energy Impact Partners, BMW i Ventures has led the $27 million Series A funding, with the participation of Fifth Wall, Bioindustrial Innovation Canada, and Planetary Technologies. Cyclic Materials plans to use the fresh capital to create a hub and spoke network for its commercial-scale operations.
Cyclic Materials has developed pilot plants, distributed REE samples to prospective clients, and secured supply chain agreements. In late 2022, Cyclic Materials signed a Memorandum of Understanding with Polestar to collaborate and explore ways to recycle existing magnets efficiently. The aim is to reclaim all rare earth metals from old motors and use them to produce new drive units. This vision is to ensure that all Polestar cars are made with 100% recycled materials and are recycled at the end of their life.
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Recycling REEs is challenging due to the difficulty of separating the various magnetic materials in end-of-life products. Cyclic Materials aims to overcome this challenge by creating recycling processes for REE and other metals like copper, aluminum, steel, cobalt, and nickel from a diverse supply of end-of-life products. Their proprietary technology allows for a sustainable, secondary supply source.
According to Kasper Sage, Managing Director of BMW i Ventures, “REEs are critical for many applications from small electronics to large wind turbines but are very challenging to produce.” He added, “The Cyclic team has developed a novel process that can create a sustainable, secondary supply source. We are excited for the company’s plan to scale this technology, helping secure the metals supply chain of the future.
Cyclic Materials is based in Kingston, Ontario, Canada, and its unique approach to tapping into previously overlooked materials has caught the attention of the industry. Sander Jahilo, Circularity Lead at Polestar, stated that “Cyclic Materials were unique in that they are tapping into materials which have previously been overlooked in the recycling industry due to technical limitations.
Cyclic Materials’ innovative approach to REE recycling will undoubtedly play a significant role in securing the metals supply chain of the future. As more companies recognize the importance of sustainability and circularity, it is encouraging to see partnerships such as the one between Cyclic Materials and Polestar emerge.
