ERI will supply end-of-life magnet materials to feed ReElement’s Indiana operations. | Courtesy ERI
Electronic Recyclers International has agreed to supply ReElement Technologies with end-of-life magnet materials for rare earth oxide refining, the companies announced.
Under the arrangement, ERI will aggregate and pre-process magnet-bearing materials from its eight US processing facilities and deliver feedstock to ReElement’s Indiana operations. ReElement currently operates a commercial validation facility in Noblesville and is remodeling a 400,000-square-foot complex in Marion that is expected to start up in early 2026.
“ERI is a trusted partner to leading US technology companies and hyperscalers and their ability to efficiently source and process recycled magnet material is unmatched,” said Mark Jensen, chairman and CEO of ReElement Technologies.
ERI Chairman and CEO John Shegerian said the partnership would create “new US-based capabilities in rare earth processing with domestic and global implications.”
ReElement, a portfolio company of American Resources Corporation, says it has begun pilot shipments of rare earth oxides from its Noblesville facility, reporting purity levels exceeding 99.99%. The company reports it is taking orders from commercial and defense customers, though sustained production at volume awaits completion of the Marion facility.
Neither company disclosed tonnage commitments, processing capacity targets or capital investment figures for the expansion. ReElement has not released processing costs or pricing comparisons with imported rare earth oxides. But the partnership comes as demand grows for domestic alternatives to Chinese rare earth processing, which controls an estimated 70-90% of global refining capacity and as OEMs such as Apple explore routing end-of-life device magnets into domestic refining streams. Rare earth elements including neodymium, dysprosium and praseodymium are critical for permanent magnets used in electric vehicles, wind turbines and defense systems.
ReElement has referenced federal support including collaborations with the US defense agency and equipment financing, citing a $1.4 billion partnership, a figure that may represent projected contract value over multiple years or include development funding rather than actual procurement commitments. Federal agencies have recently expanded funding for critical minerals and magnet recycling projects, signaling stronger policy support for domestic refining capacity.
Creating a domestic market for recovered magnet waste
For ERI, which processes more than a billion pounds of electronics annually, the deal provides a domestic outlet for magnet-bearing materials as electric vehicles and e-mobility devices approach end of life. The company uses AI-driven identification systems to locate rare earth-containing components in its material streams.
Rare earth recycling represents an emerging sector for domestic supply chain development. Currently, less than 1% of rare earths globally are recycled, creating significant opportunity as companies work to scale operations and optimize processing economics to compete with established import channels.
ReElement has begun pilot shipments from its Noblesville facility, reporting purity levels exceeding 99.99%. The company plans to scale production at its Marion facility, which is expected to feature modular refining technology. As with most emerging operations in this sector, commercial-scale validation will come as the company ramps up throughput and publicly reports operational metrics. Other projects are testing bolt-on systems inside e-scrap plants to capture rare earths from shredded device streams.
Broadly, market fundamentals support the growth of magnet recycling, with multiple companies scaling capacity to handle end-of-life magnets from electronics streams. Feedstock availability is expanding with EV adoption and wind turbine retirements, policy support is strengthening for critical materials and ERI’s established infrastructure provides the material aggregation capabilities that are essential for consistent supply.
The partnership’s success will be measured by ReElement’s ability to achieve sustained commercial production at the Marion facility over the next 18-24 months, transitioning from pilot operations to full-scale throughput.
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