Toronto-based Cyclic Materials, an advanced recycling company focused on creating a circular supply chain for rare earth elements (REEs) and other critical materials, has successfully closed an oversubscribed USD $53 million Series B equity round.
This latest funding, led by ArcTern Ventures, brings the company’s total equity raised to over USD $83 million. New investors such as BDC Capital’s Climate Tech Fund, Hitachi Ventures, Zero Infinity Partners, Climate Investment, and Microsoft’s Climate Innovation Fund joined existing backers, including Fifth Wall, BMW i Ventures, Energy Impact Partners, and Planetary Technologies.
Cyclic Materials plans to use the capital to expand its rare earth recycling infrastructure in the US and Europe and grow its team to scale operations. The company’s proprietary recycling technology reduces the environmental impact of rare earth recovery, including significant reductions in carbon emissions and water usage compared to traditional mining processes.
CEO and Co-Founder Ahmad Ghahreman expressed excitement about partnering with sustainability-focused investors to accelerate the clean energy transition. “This funding underscores confidence in our ability to create a circular economy for rare earths and re-establish North American and European leadership in the rare earths industry,” Ghahreman said.
ArcTern Ventures’ Managing Partner Marc Faucher praised Cyclic Materials for aligning with their mission of sustainable solutions, calling its rare earth recycling technology a scalable decarbonization solution. The investment follows a USD $3.6 million grant from Natural Resources Canada to support Cyclic Materials’ commercial demonstration facility for producing high-purity REEs from recycled materials.
Founded in 2021, Cyclic Materials has developed innovative technologies to recover rare earths from electric vehicle motors, wind turbines, and other electronic waste, forging partnerships with key industry players such as Solvay and Vattenfall.