RarEarth, a start-up specialising in rare earth recycling and the production of high-performance magnets from electronic waste, has announced that it has completed a €2.6 million capital increase led by Primo Capital through its Primo Climate fund and MITO Tech Ventures as co-lead investor. Corbites Fund, Vento Ventures and COREangels Climate also participated in the round.
The investment will enable RarEarth to accelerate the construction of Italy’s first site for the production of NdFeB (neodymium-iron-boron) magnets from recycled material, strengthen its technical and commercial team, and optimise its industrial processes.
Global demand for rare earths is growing rapidly, driven by strategic sectors such as electric vehicles, renewable energy and advanced electronics. According to forecasts, the global rare earth metals market will grow from $6.2 billion in 2024 to over $16 billion by 2034, with a CAGR of 10.1% (source: Future Market Insight). At the same time, European demand for NdFeB magnets is set to triple by 2030, rising from 12,000 to 36,000 tonnes per year (CAGR 11.3%) (source: CEPS).
Among the 17 elements in the rare earth group, neodymium, praseodymium and dysprosium are among the most strategic but also among the most critical and impactful. Approximately 30% of these materials are used to produce ever-increasing quantities of new magnets.
Europe is currently heavily dependent on third countries for the extraction of these rare earths and is therefore in a position of extreme strategic vulnerability. RarEarth’s technology responds to this challenge, helping to increase European strategic independence and reduce the environmental impact of the supply chain, in line with new European Union policies, including the Critical Raw Materials Act.
RarEarth is able to manage the entire recycling and production cycle of magnets internally, starting from end-of-life motors and without the need to trace the original chemical element. The proprietary process, developed by the startup’s team of engineers and industrial chemists, consists of two phases: recycling, through a patented three-step system (storage, disassembly and thermomechanical-chemical treatment), RarEarth efficiently recovers magnets from electronic waste and production, the material is refined and treated using metallurgical processes to obtain a high-performance magnetic powder, which is transformed into new magnets that have demonstrated magnetic properties perfectly comparable to first-generation magnets.
The recovery rate of magnetic materials is close to 100%, and the process is carried out at low temperatures and at low cost. Magnetic and mechanical tests conducted at the Magnetic Laboratory of the Alessandria campus of the Polytechnic University of Turin confirm the high quality of the magnets, which fully meet industrial requirements for sensors and electric motors.
The magnets produced by RarEarth are used in numerous sectors, such as wind turbines, electric motors, medical devices, sensors and magnetic mapping. In a context of exponential growth in electronic waste, their solution offers a concrete response to the need to transform waste into high added-value resources.
Enrico Pizzi, co-founder and CEO of the company (pictured alongside the other co-founder), commented in a statement: “This capital increase marks a crucial milestone for RarEarth: it allows us to accelerate the industrialisation of our technology, expand our team and build the first Italian plant dedicated to the production of NdFeB magnets from recycled rare earths. The support of our investors gives us the energy to bring to market a distinctive technology at European level, combining sustainability, innovation and security in the critical materials supply chain. It is a strategic opportunity to build a rare earth recycling industry in Europe, and RarEarth wants to lead this change.
Ezio Ravaccia, general partner at Primo Climate and advisor to Primo Capital, says: “The capital increase in RarEarth represents a significant milestone for our innovation ecosystem. The technology developed by RarEarth is set to make a significant contribution to the recovery of critical materials, which are fundamental both for Italy and for the European Union and their independence in the supply chain. As Primo Climate, we are proud to be able to support the company and its founders, while contributing with our fund to the growth of the most innovative Italian companies.
Alberto Calvo, managing partner of MITO Tech Ventures, states: “We decided to invest in RarEarth because we strongly believe in an investment thesis that, in addition to the systemic benefits deriving from the circular use of critical raw materials in multiple industrial sectors, recognises the company’s project as a complete and integrated process: from the selection of industrial waste to the production and marketing of new magnets. We believe this process to be economically competitive and particularly efficient in terms of primary resource use. We are convinced that RarEarth will contribute to the development of more stable, flexible, sustainable and economically advantageous supply chains in its sectors of reference.
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