Canadian rare earths recycler Cyclic Materials has closed a $75-million strategic financing round, bringing its total equity funding to $237-million as it prepares to break ground on a major U.S. processing facility.

The company plans to use the new capital to accelerate construction of an integrated recycling campus in South Carolina and expand its network of spoke facilities across the United States. The latest round drew expanded commitments from existing investors and added electronics recycler ERI as a strategic partner.

Cyclic is nearing commissioning of its first commercial spoke plant in Arizona this quarter. The facility uses a proprietary process to extract rare earths from end-of-life magnetic products, including electric vehicle motors, wind turbines and electronic scrap, and is designed to process up to 25,000 tonnes of components annually.

"Cyclic continues to demonstrate itself to be a market leader in rare earths recovery, having advanced its commercial operations, expanded its US footprint and secured strategic partnerships across the critical material supply chain," said Vineet Khanna, investment analyst at T. Rowe Price.

The spoke facilities handle local sourcing, sorting and initial processing of feedstocks. Recycled material then moves to a centralised hub for final refining and chemical isolation of high-purity rare earth oxides. Cyclic expects to start construction at its South Carolina campus in the fourth quarter of this year.

"By expanding our Hub-and-Spoke network, we are building an integrated domestic critical material ecosystem, from feedstock sourcing and manufacturing scrap recovery to rare earth production," said Ahmad Ghahreman, founder and CEO of Cyclic Materials. "This additional capital will enable us to move faster in South Carolina and across the US."

The financing comes as demand for rare earths intensifies across AI technology, robotics, defence, automotive and medical manufacturing sectors. ERI, which signed an agreement with Cyclic earlier this year, will use its nationwide electronics collection and processing network to identify, secure and pre-process products containing rare earth magnets for recovery by Cyclic.