Japan’s Daikin to launch rare earth magnet recycling program

Osaka, Japan-headquartered Daikin Industries, the world’s largest air conditioner manufacturer, is partnering with Shin-Etsu Chemical, Hitachi and Tokyo Eco Recycle to recover and recycle rare earth magnets from compressors starting in 2027, the companies said in a joint statement on Tuesday April 14.

    “Preparations are still underway toward its planned full-scale launch in 2027,” a representative from Daikin told Fastmarkets. “The project is currently in a preparatory phase.”

    Under the program, Daikin will collect compressors from used commercial air conditioners and Tokyo Eco Recycle, with support from Hitachi, will dismantle them and extract rare earth magnets; Shin-Etsu Chemical will then recycle the extracted magnets and produce new ones, the announcement said.

    Japan is the world’s largest rare earth magnet manufacturer outside China.

    End-of-life rare earth magnet feedstock is primarily sourced from wind turbines and electric vehicle (EV) motors, with smaller contributions coming from other types of e-waste, according to the International Energy Agency (IEA).

    In April 2024, the Chinese government introduced export controls on seven heavy rare earth elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — as well as the permanent magnets that contain them.

    Want to learn more about what is happening at the cutting-edge of critical minerals and battery raw materials? Listen to our Fast Forward podcast series for insight, debate and news from the major players. 

    In early January, China “strengthened” its export controls against Japan by prohibiting export of dual-use items to Japanese military users, for Japan’s military use, or to any other end users who may enhance Japan’s military capabilities.

    China’s export controls prompted a rush to secure new sources, with several new projects announced to boost supply of rare earths and magnets.

    Other notable rare earth magnet recyclers include Canadian junior Mkango, which launched a UK rare earth separation and recycling facility in collaboration with Birmingham University in January, and Cyclic Materials, which signed a non-binding memorandum of understanding (MOU) with Canadian specialty materials and rare earth magnet producer Neo Performance Materials in March.

    And Caremag, a subsidiary of French rare earths technical consultancy Carester which is building a large-scale rare earth recycling and refining facility in Lacq, in southern France.

    In the week to Thursday April 16, Chinese neodymium-praseodymium (NdPr)prices edged up, while yttrium prices continued to soar in Europe as supplies remain severely constrained.

    Stay informed, make confident decisions and navigate the dynamic rare earths market with Fastmarkets. Ask about our products today

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