Cyclic Materials and VAC Partner to Recycle Magnet Manufacturing By-products
VAC Awarded $111 Million Tax Credit for New Magnet Factory in USA, Makes Recycling Deal with Cyclic Materials
New Power Technology
April 11, 2024
The race to net zero has become a sprint. The UN’s latest warning to the world couldn’t be clearer: Society must take immediate action to reduce emissions before the worst effects of climate change become irreversible, likely within 10 years.
So who are the leaders in the fight? A good place to look is Cleantech Group’s Global Cleantech 100, a prestigious ranking of companies with the most promising climate solutions. The list serves as a beacon to governments and corporations — supporting these ventures can help reduce emissions and hit climate targets while reaping outsized return on investment. Canadians should take note, says MaRS climate expert Tyler Hamilton. “Our country churns out some of the strongest companies in the world, but we need to create conditions to help these champions scale for global impact,” he says. “We need to fill capital gaps and act as better customers of these proven innovations.”
This year, the balance of Canada's 13 ranking ventures share a common theme: EVs, and it makes sense.Transportation contributes roughly 11 percent of the nation’s annual emissions, and many new domestic initiatives have set their sights on reducing that figure. Billions in tax dollars have been invested in new battery factories and Ottawa recently announced that gas-powered vehicles will be phased out by 2035. And the market is responding: A recent MaRS report found that close to 30 percent of all Canadian VC, private equity and M&A deals in the electric vehicle sector last year involved companies crafting charging infrastructure.
The global environmental movement can’t be stopped now.
What it does: When electric motors are recycled, their magnets and other metals mostly end up in a landfill. Cyclic Materials turns this waste into the raw materials necessary to make more magnets. “In 10 to 15 years, a majority of the cars that are being recycled will be EVs,” says Ahmad Ghahreman, CEO of the Toronto-based company. “The market size is going to be substantial."
Key stat: This process uses only 2 percent of the water typically required to produce such materials.
In 2024: The venture just opened a pilot recycling plant in Kingston with the goal of building a full plant with eight times the capacity by 2025.
Read the full article on MaRS Discovery District.
