Mitsubishi Backs US Rare Earth Recycler

Mitsubishi Materials Corp says it will invest in ReElement Technologies Corp of the United States and collaborate in the business of recycling of rare earths and other rare metals.

The deal comes after Japan and the United States agreed to cooperate in strengthening their critical mineral supply chains in the face of China’s tightening of export controls on such materials widely used in a range of technology products.

Mitsubishi Materials did not disclose the amount of the planned investment, which will take the form of acquiring ReElement’s preferred shares.

ReElement has a technology that can significantly cut costs of separating rare metals from used batteries and magnets compared to the widely employed solvent extraction method, the company said.

The lower cost and the reduced environmental impact are achieved by “downsizing of facilities” and “eliminating the use of hazardous solvents,” it said.

Mitsubishi Materials will take part in the US company’s plan to start operating this year a rare earth recovery facility, currently under construction in Indiana, by providing feedstock and outsourcing separation and purification processes, it said.

The pair are also considering the joint commercialization of rare metal recycling in Japan, the company said.