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WPI Entrepreneurs Find Pricing, Awareness, and Supplies Impact Rare Earth Recycling Industry

When a group of WPI students and faculty members first set out in 2022 to interview people connected to the rare earth magnet industry, they wanted to know if an innovative magnet recycling business could succeed. After more than 130 interviews, says Adam Powell, associate professor in the Department of Mechanical and Materials Engineering and a member of the team, the group concluded that the answer is a qualified “yes.” Adam Powell “We learned there is demand for recycled materials, and a lot of people want a domestic recycling industry to grow,” Powell says. “Yet the reality is that only a small number of U.S. companies are building recycling capacity. The industry is still maturing as companies develop facilities, awareness of recycling grows, and a steady supply of old magnets builds.” “Rare earth” refers to a group of metallic elements such as neodymium that are abundant in the earth’s crust but difficult and environmentally damaging to mine and process. Magnets made from rare earth minerals are used in everything from hybrid and electric vehicles to wind turbines and fighter jets, and the total market for rare earth elements was valued at more than $3 billion in 2023. China supplies most of the world’s rare earth minerals and has used its hold on the market as a political tool. In early 2025, China threatened to limit rare earth exports, especially to Western defense contractors, as a response to U.S. tariffs. During its review, the WPI group found that challenges for rare earth recycling include incentivizing the recycling of materials and competing with magnets made from virgin materials. 

When a group of WPI students and faculty members first set out in 2022 to interview people connected to the rare earth magnet industry, they wanted to know if an innovative magnet recycling business could succeed.

After more than 130 interviews, says Adam Powell, associate professor in the Department of Mechanical and Materials Engineering and a member of the team, the group concluded that the answer is a qualified “yes.”

Adam Powell

“We learned there is demand for recycled materials, and a lot of people want a domestic recycling industry to grow,” Powell says. “Yet the reality is that only a small number of U.S. companies are building recycling capacity. The industry is still maturing as companies develop facilities, awareness of recycling grows, and a steady supply of old magnets builds.”

“Rare earth” refers to a group of metallic elements such as neodymium that are abundant in the earth’s crust but difficult and environmentally damaging to mine and process. Magnets made from rare earth minerals are used in everything from hybrid and electric vehicles to wind turbines and fighter jets, and the total market for rare earth elements was valued at more than $3 billion in 2023.

China supplies most of the world’s rare earth minerals and has used its hold on the market as a political tool. In early 2025, China threatened to limit rare earth exports, especially to Western defense contractors, as a response to U.S. tariffs.

During its review, the WPI group found that challenges for rare earth recycling include incentivizing the recycling of materials and competing with magnets made from virgin materials. 

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