Canadian rare earth recycling company Cyclic Materials raised $50 million from BMWi and Hitachi Ventures
Cyclic Materials is a recycler critical metals like rare earths that are used in the manufacture of magnets for wind turbines and electric vehicles. It has raised 53 millions U.S. Dollars from investors such as BMWi.
The Canadian startup is pursuing global expansion plans despite a slowdown of electric vehicle sales. The proceeds will be used to establish commercial facilities in Europe and the United States, according to CEO and co-founder Ahmad Ghahreman.
ArcTern Ventures led the funding round, followed by BDC Capital and Zero Infinity Partners. Climate Investment and Microsoft's Climate Innovation Fund were also involved.
Investors who participated in the Series A fund include Fifth Wall, BMWi Ventures Energy Impact Partners and Planetary Technologies. The company raised more than $83m in equity over the past 12 months.
The technology of Cyclic Materials extracts raw materials critical to the production of new products from electronic waste, such as data center electronics, MRI machines and electric motors.
The company is among a few that are aiming to gain a larger share of the rare-earth supply chain, as Western governments support domestic players to try to break China's grip on the market. China controls 95% of it.
Ghahreman stated that "we desperately need rare earth metals outside of China...the electrification story is so strong, we need these metals." He added that fundraising was difficult.
Ghahreman noted that the company allowed for nine months of funding, but the round was closed in only three. This showed a greater demand than just automakers.
(source: Reuters)
