Cyclic Materials and VACUUMSCHMELZE Expand Partnership to Recycle Rare Earth Magnet Manufacturing Waste in the U.S.

Cyclic Materials, the advanced recycling company creating a circular supply chain for rare earth elements (REEs) and other critical materials, today announced an expansion of its partnership with VACUUMSCHMELZE (VAC), a leading developer of magnetic materials and solutions.

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The companies have signed a 10-year exclusive agreement for recycling 100 percent of the magnet production byproducts (i.e. swarf) that will be produced at VAC's impressive new manufacturing facility in Sumter, South Carolina scheduled to begin operations at the end of 2025. This extended partnership builds on the 2024 agreement between both companies that ensures efficient recycling of critical materials used in high-performance permanent magnets.

"At Cyclic Materials, our mission is to recover critical materials from permanent magnets that can be put back into the magnet supply chain to reduce the reliance on traditional mining methods and overseas sources," said Ahmad Ghahreman, co-founder and CEO of Cyclic Materials. "With the extension of our partnership with VAC, we're collectively building more momentum towards our goal of building a North American supply chain. VAC brings not only a reliable source of raw materials for extraction but also decades of expertise in rare earth magnet technology. Together we are making the circular economy a reality."

VAC produces neodymium-iron-boron (NdFeB) rare earth magnets, which are essential to automotive, defense, industrial and renewable energy applications. Through this extended agreement, VAC also strengthens its commitment to circularity with the option to reintegrate recycled Mixed Rare Earth Oxides (rMREOs) from Cyclic Materials into its own production processes.

"We are pleased to expand our partnership with Cyclic Materials to further support the circular economy for critical materials essential to the energy transition," said Dr. Erik Eschen, CEO of VACUUMSCHMELZE. "The addition of this new contract for our South Carolina facility strengthens our ability to localize the recovery and reintegration of REEs back into our production. By continuing to leverage Cyclic Materials' innovative recycling processes alongside our advanced magnet manufacturing, we are collectively ensuring a sustainable and high-purity feedstock for high­ performance magnets to meet current and future industrial demand."

Cyclic Materials raised $57 million in its Series B equity round last year, backed by global industry leaders like Microsoft, Amazon, Hitachi Ventures, BMW i Ventures, Jaguar Land Rover's lnMotion fund, and specialized funds such as Energy Impact Partners, ArcTern Ventures and Fifth Wall. Together, these investments position Cyclic Materials as a key partner for companies seeking sustainable and circular supply chain solutions, particularly in the automotive and data center industries.

The company recently announced its move into the U.S. with its plans to open a facility in Mesa, Arizona, which underscores the critical role Cyclic Materials plays in advancing sustainable supply chains as it expands its footprint across North America with plans to establish operations into Europe in the future.

Established in 2021, Cyclic Materials' proprietary technologies are capable of economically and sustainably recovering critical raw materials from end-of-life electric vehicle motors, wind turbines, MRI machines, and data center electronic waste. Over the years, the company has forged strategic partnerships with key industry leaders such as Solvay, Vattenfall, Synetiq, and VACUUMSCHMELZE to recycle magnets containing REEs and establish a circular supply chain.

About Cyclic Materials

Cyclic Materials, founded in 2021, is a cleantech company building a circular supply chain for rare earth elements (REEs) and other critical materials essential to the clean energy transition. Its innovative technology transforms end-of-life products into valuable raw materials used in EVs, wind turbines, and electronics. In 2023, the company launched a commercial demo facility using its MagCycle℠ process to recover rare earth magnets. In 2024, it opened a second facility in Kingston, Ontario, producing Mixed Rare Earth Oxide via its REEPure℠ hydrometallurgical process. With demand for REE-based magnets surging, Cyclic Materials is scaling globally across North America, Europe, and Asia. Mesa, Arizona, is its first U.S. location. In recognition of its pioneering work, it was named the #8 Most Innovative company in North America by Fast Company in 2025. Learn more at cyclicmaterials.earth.

About VACUUMSCHMELZE (VAC)

VACUUMSCHMELZE (VAC) is a leading global producer of advanced magnetic solutions, rare earth permanent magnets, and inductive components. With extensive application know-how and 100 years of experience in material science and product development, VAC designs and manufactures mission critical solutions for a wide variety of industries, including renewable energy, e-mobility, automotive, industrial automation, medical, aerospace. VAC's unique ability to develop and manufacture from base elements through final products enables us to provide customers optimal form factors and performance, generating best in class efficient solutions in an environmentally conscious manner. More information is available at www.vacuumschmelze.com. Vac is a portfolio company of Ara Partners, a global private equity and infrastructure firm that is decarbonizing the industrial economy. More information at www.vacuumschmelze.com.

About ARA Partners

ARA Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of June 30, 2025, Ara Partners had approximately $6.6 billion of assets under management.

For more information about Ara Partners, please visit www.arapartners.com.

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