Reach Resources makes strategic investment in rare earth element recycling business
REEcycle aims to provide an alternative option to traditional mined sources of rare earth metals, which in turn serves to reduce supply chain uncertainty and geopolitical risk for companies reliant on these materials. Reach Resources Ltd (ASX:RR1) has plunged $1.8 million into REEgenerated Pty Ltd, an Australian private company that owns 100% of the Coconut Club rare earth element (REE) exploration project in Quebec, Canada, and has an option to snap up 100% of REEcycle Inc, a US-based REE separation and technology company.
The move represents a wider current trend towards capturing downstream REE markets, reducing sovereign risk in the face of geopolitical challenges and securing supply via means other than mining.
Reach Resources non-executive chairman Robert Downey said,
“With respect to the investment in REEgenerate, the board and management of Reach Resources are very excited about the potential that this strategic investment brings to the company. Notwithstanding the growing body of scientific research and development for REE recycling methods thus far, most technologies are only economically viable on a small scale, prompting several countries to export their e-waste to countries such as China for processing. The most common recycling methods employed are liquid-liquid extraction processes, which dissolve the end-of-life products/wastes in strong acids prior to the use of various solvents for extraction of REEs as is common practice in REE mining and processing. The consequences of these existing applications are that they have high energy demands and the generation of vast amounts of toxic waste as a chemical by-product.”
Potential to reclaim nearly all REEs from discarded magnets
REEcycle has developed a process with the potential to reclaim nearly all rare earth elements in discarded NdFeB magnets, with a recovery efficiency demonstrated in pilot testing in excess of 99%. The patented process, developed at the University of Houston, uses a proprietary solvent to safely and efficiently extract REEs from scrap with low temperatures, low pressures and minimal energy needs and waste.
In pilot testing, REEcycle’s technology showed the potential to safely extract 15 of the 17 rare earth elements found in discarded permanent magnets in electronic waste from its pilot plant in Houston, Texas. The tests showed the company was able to achieve up to 99.8% separation and recovery efficiency of pure rare earth elements from the other materials in the magnet – iron and boron. The NdFeB magnets will be sourced predominantly from end-of-life wind turbines, electric vehicles, electric bikes and electronic waste.
Alternative to traditional mined sources
REEcycle aims to provide an alternative option to traditional mined sources of rare earth metals, which in turn serves to reduce supply chain uncertainty and geopolitical risk for companies reliant on these materials. REEcycle won top honours for the US Department of Energy’s National Clean Energy Prize and has received cash awards from the National Science Foundation, the Department of Energy and top US universities. REEgenerate has established a high-powered board including leading industry experts Ashley Zumwalt-Forbes and Daniel Marmadou, and an advisory team including Mick McMullen and founder Casey McNeil.
Multi-billion-dollar market
The global permanent magnet market size was valued at US$17.85 billion in 2018 and is projected to reach US$34.70 billion by 2026, exhibiting a compound annual growth rate of 8.7% during the forecast period. The rare earth metals component of this market is valued at US$5.3 billion in 2021, with only 1% of REEs sourced from recycled end-of-life products. REEcycle was established to create a dependable, renewable, secure source of rare earth elements, to reduce uncertainty for companies reliant on these materials.
Strategic focus on neodymium and dysprosium
The patented process uses a proprietary solvent to extract REEs safely and efficiently from scrap with low temperatures, low pressures and minimal energy needs and waste. The REEcycle team has strategically concentrated on the recovery of neodymium and dysprosium, two REEs that are ranked highest in both importance to clean energy and in supply risk. Shanghai Metals Market (SMM) forecast recycling of NdFeB magnets is likely to become the largest growth of neodymium and dysprosium supply from 2021 to 2025.
“REEcycle’s extraction method involves crushing recycled NdFeB magnets and placing their contents into a proprietary solvent. The neodymium and dysprosium separate from other materials (iron and boron) to form REE-rich metal organic frameworks that can easily be converted to oxides,” Downey explained.
“The iron and boron are dissolved in the process, simplifying separation and removal. The resulting liquid – which is water with dissolved iron and boron – is then gravity separated, leaving behind a high purity REE mixture.
“The extracted mixture can then be sold on to permanent magnet manufacturers and other consumers. Importantly, the resulting water can be recycled several times as a means of minimising disposal cost and improving green efficiencies.”
Reach Resources recently raised $2.4 million in new equity to fund its investment in REEgenerate and the development of its existing mineral resource exploration projects.
