A new UK initiative, CirculaREEconomy, has officially launched to establish a sustainable, independent, and circular supply chain for Rare Earth Permanent Magnets (REPMs). The three-year programme brings together leading recyclers, manufacturers, and OEMs to develop advanced recycling technologies and foster strategic integration across the REPM value chain.
Led by Ionic Technologies, the consortium includes key players across the UK supply chain: Ford Technologies Ltd, Bentley Motors Ltd, Wrightbus, European Metal Recycling, the British Geological Survey and Less Common Metals (LCM).
Rare Earth Elements (REEs) are vital to the manufacture of permanent magnets used in electric motors and other high-efficiency components critical to the transition to net zero. However, global REE supply remains volatile and geopolitically concentrated, leaving industries vulnerable to disruption. While the UK has limited natural REE deposits, it boasts a strong base of manufacturers and end users reliant on these materials.
CirculaREEconomy addresses this national challenge by focusing on recycling as the most viable and sustainable route to securing long-term REPM supply. The project will recover rare earth materials from end-of-life products and industrial scrap, reprocess them into high-purity feedstocks, and reintegrate them into the manufacturing cycle. This approach will reduce dependency on imported raw materials, retain value within the UK economy, and support the country’s electric vehicle and green energy ambitions.
Aaron Riley, General Manager at LCM highlights the importance of collaboration: “CirculaREEconomy is a powerful demonstration of what can be achieved through industry-wide collaboration. By bringing together expertise from across the supply chain, from recycling to manufacturing, we are not only advancing sustainable rare earth magnet technologies but also strengthening the UK’s resilience in a strategically vital sector.”
Manu Kaimanikal, Senior Developmental Metallurgist at LCM added: “The CirculaREEconomy project represents a pivotal advancement in the development of a sustainable, circular supply chain for critical materials, including rare earth elements used in permanent magnets, here in the UK.
“By transforming high-purity recycled rare earth oxides into advanced alloy systems, we are enabling the production of high-specification magnets that meet the rigorous performance demands of the electric vehicle sector. We are proud to contribute our specialist metallurgical expertise to this vital effort.”
CirculaREEconomy will run until 2028, with key milestones in materials recovery, refining, alloy development, and OEM validation. This project is part of the UK Department for Business and Trade’s £2.5 billion DRIVE35 programme, which supports the transition to zero-emission vehicle manufacturing. It is match-funded through a £5.5 million Collaborate grant awarded to the consortium by the Advanced Propulsion Centre UK, delivered in partnership with the Department for Business and Trade.