Integrated Water and Materials Recovery in the Upcycling of Magnets in the EU

As electric vehicles, wind turbines and energy-efficient devices become more widespread, there is an increasing need for neodymium-iron-boron (NdFeB) magnets. Given this rising demand and the global imbalance in rare earth production (China is responsible for more than 90 % of global output), there are concerns as to long-term supply security for the European industry. For this reason, sustainable sourcing strategies for rare earths are urgently needed that align with circular-economy principles and the EU’s goal of a low-emission industrial ecosystem. Recycling NdFeB magnets can reduce supply risks while at the same time significantly mitigating environmental impacts compared with primary production.

The European NEO-Cycle project involves the processing of raw materials recovered from end-of-life NdFeB magnets using innovative methods so they can be used in higher-value applications, including pharmaceutical production (Fig. 1). This means that the constituent materials are upcycled, an approach that helps close material loops and strengthen Europe’s raw-materials base.

The first stage of the process is carried out by project partner TU Bergakademie Freiberg and involves chlorinating the magnet powder in the solid state. Instead of conventional hydrochloric acid, ammonium chloride is added by means of a thermal process. In this stage, the metals are converted directly into their chloride forms, which reduces chemical consumption and generates a high-purity ammonia solution.

In the second stage, Fraunhofer IKTS contributes its extensive experience in metal separation and process-water treatment to recover valuable components of high purity from the pretreated materials (Table 1, Fig. 2) and process the resulting solutions. The process combines established methods – metal extraction with organic acids, selective precipitation, crystallization and solvent extraction – with innovative membrane technologies (including diffusion dialysis and electrodialysis) and membrane-assisted extraction techniques (such as reverse osmosis).

One key aspect of the NEO-Cycle project is the combination of different technologies to achieve a zero-waste concept. After successful laboratory testing, Fraunhofer IKTS will scale up these processes to pilot-plant scale beginning in 2026 (Fig. 3). The processes developed in this way minimize reagent consumption and reduce the need for fresh water without compromising product quality. The objective of the project is to establish an economically and environmentally viable upcycling route for end-of-life magnets.