Magnet Recycling: Economics, Collection and Policy
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Rare earth magnet recycling is held back by collection and cost, and propped up by policy and customer money. At 2025 USGS prices a tonne of recovered neodymium-praseodymium oxide is worth about $69,000, dysprosium oxide about $239,000 and terbium oxide about $1 million, which is why heavy rare earths are the prize. Policy supplies the push: the EU requires disclosure of recycled content in magnets from 24 May 2027 and plans to restrict exports of magnet scrap, the US Department of War has lent $80 million to a recycler in Indiana, and Apple prepaid $200 million to MP Materials for recycled-content magnets.
$69,000
value of one tonne of NdPr oxide at the 2025 average price of $69 per kilogram, calculated
Source: USGS, citing Argus
$80m
Department of War loan to a rare earth recycler in Marion, Indiana in 2025
Source: USGS rare earths (heavy)
$200m
prepayment Apple made within its $500 million collaboration with MP Materials
Source: SMM analysis, August 2026
€216m
French and Japanese capital for Carester's Lacq project, including €106 million from the French government
Source: SMM analysis, August 2026
What is recovered rare earth worth?
The value of a tonne of recovered oxide depends on which element it is. The table multiplies the USGS 2025 average prices by 1,000 kilograms. These are Chinese-origin prices, so the value of licensed material outside China can be higher.
| Oxide | Price per kilogram | Value per tonne |
|---|---|---|
| Neodymium-praseodymium (NdPr) | $69 | $69,000 |
| Neodymium | $73 | $73,000 |
| Dysprosium | $239 | $239,000 |
| Terbium | $1,010 | $1,010,000 |
Source: prices from USGS rare earths and USGS heavy rare earths; the value per tonne is calculated by this site. Magnet scrap contains a mix of elements, so the value of a tonne of scrap is lower than the figures for pure oxides.
What makes collection hard?
Collection is hard because the magnets are small, embedded in other products and scattered. The recycling projects in the sources therefore start from sources that are easy to reach: HyProMag recovers motors from hard disk drives, Cyclic Materials has a 10-year deal for magnet swarf from VACUUMSCHMELZE, and Mitsubishi Electric began tonne-scale trials in 2026 of dismantling neodymium magnets from air conditioner compressors. Physics World reported in 2024 that less than 1% of magnets get recycled. The EU's disclosure rule is meant to create the data and the incentive for design and collection changes.
Which policies and funding support magnet recycling?
| Instrument | Detail | Source |
|---|---|---|
| EU recycling benchmark | By 2030 EU recycling capacity should be able to produce at least 25% of annual consumption of strategic raw materials | Regulation 2024/1252, Article 5 |
| EU recycled-content disclosure | From 24 May 2027, or two years after the delegated act on calculation rules if later, sellers of products with magnets above 0.2 kg must publish the recycled share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt; minimum shares by 31 December 2031 | Regulation 2024/1252, Article 29 |
| EU scrap export restrictions | The RESourceEU plan proposes restricting exports of permanent magnet scrap and waste; no date was given in the report | electrive |
| US government loans | $80 million to a recycler in Marion, Indiana and $5.1 million to a recycler in Houston, both to recover rare earths including terbium and dysprosium | USGS |
| Customer prepayment | Apple prepaid $200 million of a $500 million collaboration for recycled-content magnets from MP Materials, with magnets from 2027 | SMM |
| UK funding | Ionic Technologies, Belfast, received £12 million of UK DRIVE35 funding to expand to 400 t a year | SMM |
Will recycling matter before 2030?
Recycling will add supply only slowly, because the volumes of end-of-life magnets are still limited and most capacity is planned. SMM notes that most disclosed figures are design capacities or long-term targets and that global rate remains below 1%. The stronger near-term effect is on the heavy elements and on supply security: the Department of War has funded recyclers that aim to recover terbium and dysprosium from existing material. See magnet recycling technology for the processes and rare earth recycling for the overall picture.
Frequently asked questions
Is rare earth magnet recycling economic?
Rare earth magnet recycling pays best for the heavy rare earths, because terbium oxide averaged $1,010 per kilogram and dysprosium oxide $239 in 2025 against $69 for NdPr oxide. Most projects still rely on government loans, customer prepayments or regulation, and their output is small.
What does EU law say about recycled content in magnets?
EU law requires sellers of products with magnets above 0.2 kg to publish the recycled share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt from 24 May 2027, or two years after the delegated act on calculation rules if later, with minimum shares to be set by 31 December 2031.
Why is it hard to collect magnets for recycling?
It is hard to collect magnets for recycling because they are small and built into motors, drives and appliances. Recycling projects therefore start with accessible sources such as hard disk drives, production swarf and air conditioner compressors.
Who funds magnet recycling?
Magnet recycling is funded by governments and customers. The US Department of War lent $80 million to a recycler in Indiana, the UK funded Ionic Technologies with £12 million, and Apple prepaid $200 million to MP Materials for recycled-content magnets.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
- USGS Mineral Commodity Summaries 2026: Rare earths and rare earths (heavy)
- Regulation (EU) 2024/1252, Articles 5 and 29
- SMM: Global rare earth recycling surges as US, EU and leading companies boost capacity (31 August 2026). Secondary analysis; many figures are company plans
- electrive: EU presents action plan for securing critical raw materials (4 December 2025)
- Physics World: Recycling rare earth permanent magnets (11 March 2024)
