Global demand for rare earth magnets is expected to rapidly outpace supply within the next 5 years with upwards of 80% of EVs projected to use rare earth metal permanent magnets. Review of the global rare earth mining project development pipeline indicates that future supply of magnet rare earths -- namely Nd, Pr, Tb and Dy -- will not be met owing to many projects having limitations associated with mineralogical, technical or environmental aspects. The residual shortfall between magnet rare earth supply and demand will need to be -- at least in part -- fulfilled by recycling of spent rare earth magnets.

Currently, the most widely practiced route for recycling rare earth magnets is to export for re-processing in an established rare earth refining process plant. This has been a tolerable albeit inefficient option to date, and the operators are becoming increasingly conscious of its limitations which include geostrategic risks, exposure to additional tariffs and duties, and the application of refining practices that have a significant carbon and environmental footprint. Other methods for the recycling of rare earths from magnets includes processes such as hydrogen decrepitation. Such processes generally do not allow production of high-quality magnets and research has shown these are not suitable for deployment in electric vehicles or wind turbines.

Seren has developed a rare earth separation and purification technology -- based on the use of ionic liquids -- for the recovery of rare earths from magnets. The company has developed the technology and progressed through research and development, and techno-economic qualification. The next step for the company is to embark on construction and operation of a demonstration plant to (a) provide large-scale samples for customer qualification and (b) to de-risk the technology to secure investment for construction of a full-scale plant.