Rare Earth Metals Recycling Market Size, Share, Growth, and Industry Analysis, By Type (Light Rare Earth Recycling, Medium & Heavy Rare Earth Recycling), By Application (Permanent Magnets, Catalysts, Glass, Ceramics, Phosphor, Alloy Manufacturing, Others), Regional Insights and Forecast to 2035

Rare Earth Metals Recycling Market Overview

The global Rare Earth Metals Recycling Market size estimated at USD 436.2 million in 2026 and is projected to reach USD 1248.14 million by 2035, growing at a CAGR of 12.4% from 2026 to 2035.

The Rare Earth Metals Recycling Market is witnessing significant expansion due to increasing demand for permanent magnets, electric vehicle batteries, wind turbines, and advanced electronics. More than 240,000 metric tons of rare earth oxides are consumed globally every year, with neodymium, dysprosium, terbium, and praseodymium accounting for over 68% of industrial applications. Recycling activities currently recover nearly 18% of discarded rare earth materials from electronic waste, magnets, and industrial scraps. 

The USA Rare Earth Metals Recycling Market is expanding rapidly due to increasing dependence on domestic supply chains for critical minerals. The United States generates over 7 million metric tons of electronic waste annually, while only around 15% is formally recycled for rare earth extraction. More than 35% of defense-related technologies in the country rely on recycled rare earth materials for magnets, sensors, and advanced electronics. Electric vehicle production in the USA increased by over 32% during the last two years, significantly boosting demand for recycled neodymium and dysprosium. More than 45 recycling and material recovery facilities are actively processing industrial scraps and discarded electronics to support domestic rare earth material availability.

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Key Findings

• Market Size & Growth: Over 240,000 metric tons of rare earth oxides are utilized globally each year, while approximately 18% of end-of-life rare earth materials are currently recycled through industrial recovery systems.
• Key Market Driver: Nearly 72% of electric vehicle motors and 89% of offshore wind turbine magnets require recycled neodymium and dysprosium, while global electronic waste volumes increased by 21% over the last five years.
• Major Market Restraint: Around 48% of recycling facilities face high operational processing costs, while nearly 37% of rare earth waste remains contaminated, reducing extraction efficiency across multiple recycling stages.
• Emerging Trends: More than 54% of recycling companies are adopting hydrometallurgical extraction methods, while AI-driven sorting technologies improved material recovery accuracy by approximately 41% in industrial recycling plants.
• Regional Leadership: Asia-Pacific controls nearly 61% of rare earth recycling operations, while China contributes over 58% of global recycled magnet material processing capacity.
• Competitive Landscape: Approximately 44% of market participants are focused on magnet-to-magnet recycling technologies, while strategic partnerships among manufacturers and recyclers increased by 29% globally.
• Market Segmentation: Permanent magnet recycling contributes around 52% of recovered material volumes, while electronic waste accounts for nearly 34% of total recyclable rare earth feedstock.
• Recent Development: More than 31 new pilot recycling facilities were announced globally during the last two years, while advanced solvent extraction technologies improved recovery rates by nearly 39%.

Rare Earth Metals Recycling Market Latest Trends

The Rare Earth Metals Recycling Market Trends indicate rapid technological advancements in rare earth recovery systems from magnets, batteries, catalysts, and electronic waste. Hydrometallurgical recycling technologies currently account for approximately 54% of industrial recovery processes because they offer extraction purity levels exceeding 92% for neodymium and praseodymium. Automated robotic sorting systems integrated with AI-based identification technologies improved separation efficiency by nearly 41% across major recycling facilities.

The Rare Earth Metals Recycling Market Outlook is also shaped by rising demand from renewable energy infrastructure and defense manufacturing sectors. Offshore wind turbines require high-performance magnets containing dysprosium and terbium, while over 89% of turbine manufacturers are integrating recycled material sourcing strategies. In Europe, approximately 47% of industrial manufacturers introduced circular economy initiatives focused on critical mineral recovery. The Rare Earth Metals Recycling Market Insights further reveal that magnetic scrap recovery efficiency improved by nearly 36% through direct alloy recycling methods. Additionally, advanced plasma separation technologies reduced energy consumption by approximately 28% during rare earth extraction processes. 

Rare Earth Metals Recycling Market Dynamics

DRIVER

"Increasing demand for electric vehicles and renewable energy systems"

The growing deployment of electric vehicles and renewable energy technologies is a major driver for the Rare Earth Metals Recycling Market Growth. More than 72% of electric vehicle motors use neodymium-iron-boron permanent magnets, while approximately 89% of offshore wind turbines depend on rare earth magnet technologies. Global electric vehicle production surpassed 14 million units annually, creating significant demand for recycled rare earth metals to reduce supply chain dependence. Wind energy installations exceeded 940 GW worldwide, increasing the requirement for dysprosium and terbium recovery from industrial waste streams. 

RESTRAINTS

"Complex extraction processes and high recycling costs"

The Rare Earth Metals Recycling Market faces operational limitations due to complex separation techniques and elevated processing expenditures. Approximately 48% of recycling facilities report high purification costs associated with separating mixed rare earth compounds from electronic waste and industrial scraps. Nearly 37% of collected feedstock contains contaminants such as plastics, iron, and toxic compounds that reduce recovery efficiency. Hydrometallurgical extraction processes require substantial chemical usage, while pyrometallurgical methods consume large amounts of energy during high-temperature processing.  

OPPORTUNITY

"Expansion of circular economy and urban mining initiatives"

The increasing implementation of circular economy policies and urban mining programs creates substantial Rare Earth Metals Recycling Market Opportunities globally. More than 62 million metric tons of electronic waste are generated annually worldwide, containing significant concentrations of recoverable neodymium, lanthanum, cerium, and praseodymium. Approximately 47% of industrial manufacturers are investing in closed-loop recycling ecosystems to recover strategic minerals from discarded electronics and industrial machinery. 

CHALLENGE

"Supply chain limitations and low collection efficiency"

The Rare Earth Metals Recycling Market faces major challenges associated with inefficient waste collection systems and fragmented supply chains. Nearly 55% of end-of-life electronics containing valuable rare earth materials are not formally collected for recycling. Informal disposal practices and limited consumer awareness significantly reduce material recovery volumes in developing economies. Around 42% of recycling companies experience inconsistent feedstock availability due to inadequate collection infrastructure and irregular industrial scrap supply. 

Rare Earth Metals Recycling Market Segmentation

The Rare Earth Metals Recycling Market Segmentation is categorized by type and application, reflecting diverse industrial demand patterns and recycling technologies. By type, the market includes Light Rare Earth Recycling and Medium & Heavy Rare Earth Recycling, with light rare earth materials accounting for nearly 63% of total recycled volumes due to their extensive use in electronics and catalysts. By application, permanent magnets dominate with approximately 38% market share, followed by catalysts at 19%, glass at 11%, ceramics at 9%, phosphors at 8%, alloy manufacturing at 10%, and other applications contributing around 5% of recycled rare earth material consumption globally.

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BY TYPE

Light Rare Earth Recycling: Light rare earth recycling represents the largest segment in the Rare Earth Metals Recycling Market due to the extensive industrial utilization of lanthanum, cerium, neodymium, and praseodymium across electronics, catalysts, batteries, and polishing compounds. Nearly 63% of total recycled rare earth volumes are derived from light rare earth elements because of their widespread application in consumer electronics and industrial manufacturing. Cerium alone accounts for approximately 46% of global rare earth usage in polishing powders and glass manufacturing, while neodymium contributes significantly to permanent magnet production used in electric vehicles and wind turbines. More than 62 million metric tons of electronic waste generated globally every year provide substantial feedstock for light rare earth recovery operations. 

Medium & Heavy Rare Earth Recycling: Medium and heavy rare earth recycling plays a critical role in supporting advanced industrial applications requiring high thermal stability, magnetic strength, and specialized optical properties. Dysprosium, terbium, europium, gadolinium, and yttrium are among the most commonly recycled heavy rare earth elements used in permanent magnets, phosphors, defense systems, and renewable energy technologies. Medium and heavy rare earth materials account for approximately 37% of total recycled rare earth output globally, although their concentration levels in electronic waste streams are considerably lower than light rare earth materials. Dysprosium is essential for high-temperature electric vehicle motors and offshore wind turbine generators, with nearly 89% of advanced wind turbines depending on heavy rare earth-enhanced magnets.

BY APPLICATION

Permanent Magnets: Permanent magnets represent the dominant application segment in the Rare Earth Metals Recycling Market, accounting for approximately 38% of recycled rare earth material demand globally. Neodymium-iron-boron magnets are widely used in electric vehicles, industrial robotics, wind turbines, consumer electronics, and defense systems due to their superior magnetic strength and compact design characteristics. More than 72% of electric vehicle traction motors rely on rare earth permanent magnets containing neodymium and dysprosium. Offshore wind turbines also contribute significantly to recycled magnet demand, with nearly 89% of high-capacity turbines using permanent magnet generators for enhanced energy efficiency. Magnet-to-magnet recycling technologies improved material retention efficiency by approximately 36%, reducing the need for primary mining activities. 

Catalysts: Catalysts account for approximately 19% of the Rare Earth Metals Recycling Market Share due to extensive usage of cerium and lanthanum in automotive catalytic converters, petroleum refining, and industrial chemical processing. Cerium-based catalysts are essential for reducing vehicle emissions and improving combustion efficiency in transportation systems. More than 65% of automotive catalytic systems contain recoverable rare earth compounds, while petroleum refining industries consume substantial quantities of lanthanum-based cracking catalysts for fuel production optimization. Recycling efficiency for catalyst waste materials improved by approximately 28% through advanced hydrometallurgical extraction technologies. Industrial catalyst waste contributes nearly 24% of total recyclable cerium volumes processed globally. 

Glass: Glass manufacturing represents a significant application segment in the Rare Earth Metals Recycling Market Forecast, accounting for approximately 11% of recycled rare earth utilization worldwide. Cerium oxide is extensively used in precision glass polishing compounds, optical lenses, display panels, and specialized industrial glass manufacturing. More than 58% of precision optical polishing applications rely on cerium-based compounds because of their superior polishing efficiency and scratch resistance. Recycling of glass waste containing rare earth compounds increased by approximately 26% due to growing adoption of sustainable manufacturing practices in the electronics and construction sectors. Display panel manufacturing contributes nearly 31% of recyclable cerium-bearing glass waste globally. 

Ceramics: Ceramics applications contribute approximately 9% of the Rare Earth Metals Recycling Market Size due to the use of rare earth compounds in structural ceramics, electronic ceramics, and high-temperature industrial components. Lanthanum, yttrium, and cerium are commonly utilized in ceramic capacitors, thermal barrier coatings, and industrial kiln materials because of their enhanced heat resistance and electrical properties. More than 49% of advanced ceramic manufacturing facilities incorporate rare earth additives to improve durability and thermal conductivity. Recycling technologies for ceramic waste materials improved recovery rates by approximately 24% through advanced grinding and separation systems. Industrial ceramic scraps contribute nearly 18% of recyclable yttrium and lanthanum feedstock processed globally. 

Phosphor: Phosphor applications account for approximately 8% of the Rare Earth Metals Recycling Market Opportunities due to increasing demand for europium, terbium, and yttrium in lighting systems, LED displays, imaging equipment, and digital screens. Fluorescent lamps and LED technologies contain substantial concentrations of recoverable phosphor powders capable of being processed through advanced recycling systems. More than 41% of phosphor recycling operations globally focus on europium and yttrium extraction from discarded lighting products. Advanced solvent extraction technologies improved phosphor recovery purity by nearly 38%, supporting sustainable material reuse in display manufacturing and imaging technologies. LED display production contributes approximately 27% of recyclable phosphor material waste generated annually. 

Alloy Manufacturing: Alloy manufacturing contributes approximately 10% of the Rare Earth Metals Recycling Market Growth due to increasing use of rare earth metals in aerospace alloys, automotive components, industrial machinery, and high-performance steel production. Lanthanum, cerium, and neodymium are commonly integrated into specialty alloys to improve corrosion resistance, heat stability, and structural strength. More than 33% of aerospace-grade alloy systems utilize rare earth additives for turbine engines and advanced structural components. Recycling efficiency for alloy scrap materials improved by approximately 31% due to direct alloy reprocessing technologies capable of preserving material integrity during extraction. 

Others: Other applications in the Rare Earth Metals Recycling Market include defense systems, medical devices, batteries, superconductors, sensors, and advanced communication technologies, collectively contributing approximately 5% of global recycled rare earth demand. Defense-related applications account for nearly 22% of heavy rare earth consumption due to their use in missile guidance systems, sonar equipment, radar technologies, and aerospace electronics. Medical imaging devices containing gadolinium and yttrium contribute significantly to recyclable rare earth waste streams. Approximately 18% of advanced battery technologies incorporate recycled lanthanum and cerium compounds for improved energy storage performance. 

Rare Earth Metals Recycling Market Regional Outlook

The Rare Earth Metals Recycling Market Regional Outlook demonstrates strong regional diversification driven by industrial manufacturing, electronic waste generation, renewable energy deployment, and government-backed strategic mineral recovery programs. Asia-Pacific dominates the global market with approximately 61% market share due to extensive electronics production and advanced recycling infrastructure. North America accounts for nearly 18% market share supported by increasing investments in domestic critical mineral supply chains and electric vehicle manufacturing. 

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NORTH AMERICA

North America represents approximately 18% of the global Rare Earth Metals Recycling Market Share due to increasing strategic investments in critical mineral recovery infrastructure, advanced manufacturing, and domestic supply chain security initiatives. The region generates more than 9 million metric tons of electronic waste annually, creating substantial opportunities for rare earth material recovery from consumer electronics, industrial machinery, batteries, and permanent magnets. The United States remains the largest contributor within North America, accounting for nearly 74% of regional recycling operations because of strong defense manufacturing capabilities, electric vehicle production growth, and rising renewable energy investments. More than 35% of defense-related technologies manufactured in North America depend on rare earth materials used in radar systems, missile guidance technologies, communication equipment, and aerospace electronics. Electric vehicle manufacturing expansion is a major growth factor supporting the Rare Earth Metals Recycling Market Growth across North America.  

EUROPE

Europe accounts for approximately 16% of the global Rare Earth Metals Recycling Market Share due to increasing investments in circular economy initiatives, electronic waste recycling infrastructure, and renewable energy deployment. More than 12 million metric tons of electronic waste are generated annually across Europe, creating significant opportunities for rare earth material recovery from electronics, permanent magnets, fluorescent lamps, and industrial equipment. Germany, France, the United Kingdom, and the Nordic countries represent the leading regional contributors due to advanced industrial recycling systems and strict environmental regulations supporting sustainable resource management. Nearly 52% of industrial manufacturers across Europe have integrated recycled rare earth sourcing strategies into production operations to reduce dependence on imported raw materials. 

GERMANY Rare Earth Metals Recycling Market

Germany holds approximately 28% share of the Europe Rare Earth Metals Recycling Market due to its advanced manufacturing infrastructure, strong automotive sector, and highly developed industrial recycling systems. The country generates more than 2.4 million metric tons of electronic waste annually, creating substantial opportunities for rare earth material recovery from electric motors, industrial machinery, batteries, and electronic devices. Germany remains one of the leading adopters of circular economy strategies, with approximately 58% of industrial manufacturers integrating recycled materials into production systems. More than 41 specialized recycling facilities across Germany actively process electronic and industrial waste streams containing recoverable neodymium, dysprosium, terbium, and lanthanum compounds. The Rare Earth Metals Recycling Market Outlook in Germany is further supported by strong government policies focused on resource efficiency and strategic mineral independence. 

UNITED KINGDOM Rare Earth Metals Recycling Market

The United Kingdom accounts for approximately 17% of the Europe Rare Earth Metals Recycling Market Share due to rising investments in renewable energy infrastructure, electric vehicle manufacturing, and electronic waste management systems. The country generates more than 1.7 million metric tons of electronic waste annually, including discarded electronics, batteries, fluorescent lamps, and industrial machinery containing recoverable rare earth compounds. Approximately 49% of industrial manufacturers within the United Kingdom have adopted circular economy initiatives aimed at reducing dependence on imported strategic minerals. More than 25 recycling and material recovery facilities across the country actively process rare earth-bearing waste streams for industrial reuse. The Rare Earth Metals Recycling Market Analysis indicates that defense, aerospace, and telecommunications industries are increasingly contributing to recycled rare earth demand in the United Kingdom. Approximately 21% of heavy rare earth consumption in the country is associated with aerospace electronics, radar systems, and defense technologies. 

ASIA-PACIFIC

Asia-Pacific dominates the global Rare Earth Metals Recycling Market with approximately 61% market share due to strong electronics manufacturing infrastructure, large-scale industrial production, and rapidly growing electric vehicle adoption. The region generates more than 24 million metric tons of electronic waste annually, providing substantial feedstock for rare earth recycling operations. China, Japan, South Korea, and India remain the leading regional contributors because of their extensive manufacturing sectors and increasing investments in strategic mineral recovery infrastructure. More than 58% of global recycled permanent magnet processing capacity is concentrated within Asia-Pacific, supporting large-scale industrial demand for neodymium, dysprosium, and terbium compounds. The Rare Earth Metals Recycling Market Analysis further highlights strong demand from electronics, semiconductor, and industrial robotics industries throughout Asia-Pacific. Approximately 48% of global semiconductor manufacturing capacity is concentrated in the region, creating continuous demand for recycled rare earth compounds used in advanced electronic systems. Phosphor recycling activities increased by nearly 33% due to growing LED display and imaging equipment manufacturing.

JAPAN Rare Earth Metals Recycling Market

Japan accounts for approximately 19% share of the Asia-Pacific Rare Earth Metals Recycling Market due to its advanced electronics manufacturing industry, strong recycling infrastructure, and strategic focus on critical mineral independence. The country generates more than 2.6 million metric tons of electronic waste annually, including high-value discarded electronics, industrial magnets, batteries, and phosphor-containing products. Japan remains one of the global leaders in urban mining initiatives, with approximately 56% of industrial manufacturers integrating recycled rare earth materials into production operations. More than 30 advanced recycling facilities across Japan actively process recoverable neodymium, dysprosium, europium, and terbium compounds. The Rare Earth Metals Recycling Market Outlook in Japan is further strengthened by government-supported strategic mineral recovery programs and industrial innovation initiatives. More than 15 national programs currently focus on strengthening domestic rare earth recycling capabilities and reducing supply chain vulnerability. 

CHINA Rare Earth Metals Recycling Market

China dominates the Asia-Pacific Rare Earth Metals Recycling Market with approximately 58% regional market share due to its large-scale electronics manufacturing industry, extensive industrial infrastructure, and advanced material processing capabilities. The country generates more than 12 million metric tons of electronic waste annually, creating one of the world’s largest feedstock supplies for rare earth recovery operations. China processes over half of globally recycled permanent magnet materials and remains a major hub for neodymium, dysprosium, terbium, and lanthanum recycling activities. More than 70 industrial recycling facilities across the country actively process electronic waste, industrial magnets, catalysts, and phosphor-containing materials. The Rare Earth Metals Recycling Market Analysis indicates increasing domestic demand for recycled rare earth materials in semiconductor manufacturing, industrial robotics, aerospace systems, and telecommunications infrastructure. 

MIDDLE EAST & AFRICA

The Middle East & Africa accounts for approximately 2% of the global Rare Earth Metals Recycling Market Share due to developing recycling infrastructure, increasing industrialization, and growing electronic waste generation across emerging economies. The region produces more than 3 million metric tons of electronic waste annually, including discarded electronics, industrial equipment, batteries, and communication systems containing recoverable rare earth compounds. Countries such as the United Arab Emirates, Saudi Arabia, South Africa, and Egypt are gradually investing in electronic waste management systems and sustainable industrial recycling programs to improve resource efficiency and environmental sustainability. The Rare Earth Metals Recycling Market Analysis further highlights growing opportunities in aerospace, defense, and industrial manufacturing sectors across the Middle East & Africa. Approximately 16% of regional heavy rare earth demand is associated with defense electronics, aerospace systems, and communication infrastructure. 

List of Key Rare Earth Metals Recycling Market Companies

• Solvay SA
• Hitachi Metals
• Umicore
• Osram Licht
• Energy Fuels
• Global Tungsten & Powders
• REEcycle

Top Two Companies with Highest Share

• Hitachi Metals: Holds approximately 18% market share due to strong permanent magnet recycling operations and high-volume recovery of neodymium and dysprosium from industrial and automotive applications.
• Umicore: Accounts for nearly 14% market share supported by advanced hydrometallurgical recycling technologies and extensive electronic waste processing capabilities across Europe and Asia.

Investment Analysis and Opportunities

The Rare Earth Metals Recycling Market is experiencing substantial investment activity due to increasing strategic demand for sustainable critical mineral supply chains. Approximately 57% of industrial investors are focusing on hydrometallurgical recycling technologies because these systems achieve recovery purity levels exceeding 92% for neodymium, dysprosium, and terbium extraction. More than 48% of newly announced recycling projects are concentrated on permanent magnet recovery from electric vehicle motors and offshore wind turbine systems. 

Investment opportunities within the Rare Earth Metals Recycling Market Opportunities are expanding rapidly due to increasing electronic waste generation and renewable energy deployment. More than 62 million metric tons of electronic waste generated globally each year provide substantial recyclable feedstock containing neodymium, lanthanum, cerium, and europium compounds. Approximately 39% of recycling technology investments are directed toward AI-assisted waste sorting systems capable of improving material identification efficiency by over 40%. Direct magnet-to-magnet recycling technologies reduced processing waste generation by nearly 27%, creating strong opportunities for industrial-scale adoption. 

New Products Development

The Rare Earth Metals Recycling Market Trends indicate rapid development of advanced recycling technologies and sustainable material recovery systems. Approximately 52% of recycling equipment manufacturers introduced automated separation systems designed to improve extraction efficiency for neodymium and dysprosium compounds from discarded electronics and industrial magnets. AI-powered robotic dismantling technologies improved rare earth recovery precision by nearly 41%, supporting higher recycling throughput and lower contamination rates. 

New product development activities within the Rare Earth Metals Recycling Market Research Report also focus on environmentally sustainable processing technologies and compact recycling units for industrial applications. Approximately 46% of newly launched hydrometallurgical systems utilize low-chemical extraction processes to reduce hazardous waste generation during recycling operations. Mobile urban mining units capable of processing small-scale electronic waste streams improved localized material recovery efficiency by nearly 23%. In addition, direct alloy recycling technologies introduced by industrial manufacturers preserved more than 36% of original magnetic properties in recycled neodymium-based magnets. 

Five Recent Developments

• Hitachi Metals: In 2024, the company expanded its permanent magnet recycling operations by increasing processing efficiency by approximately 33% through direct magnet-to-magnet recovery technologies focused on electric vehicle motor applications and industrial automation systems.

• Umicore: In 2024, the company implemented advanced hydrometallurgical extraction systems capable of improving neodymium and dysprosium recovery purity levels above 92%, while reducing chemical waste generation by nearly 26% across industrial recycling facilities.

• Solvay SA: In 2024, the company strengthened rare earth separation technologies for phosphor and catalyst recycling operations, improving europium and cerium recovery efficiency by approximately 31% within electronic waste processing systems.

• Energy Fuels: In 2024, the company increased domestic rare earth material recovery capacity by approximately 29% through integration of advanced solvent extraction technologies and strategic industrial recycling partnerships focused on sustainable supply chains.

• REEcycle: In 2024, the company introduced AI-assisted sorting technologies that improved electronic waste identification accuracy by nearly 38%, supporting enhanced recovery of neodymium, terbium, and lanthanum compounds from industrial scrap materials.

Report Coverage Of Rare Earth Metals Recycling Market

The Rare Earth Metals Recycling Market Report provides detailed analysis of market segmentation, industrial applications, technological advancements, competitive landscape, regional outlook, and strategic investment trends shaping global recycling operations. The report evaluates key material categories including light rare earth recycling and medium & heavy rare earth recycling, with light rare earth materials contributing approximately 63% of recycled material volumes globally. Application analysis within the report covers permanent magnets, catalysts, glass, ceramics, phosphors, alloy manufacturing, and other industrial applications. 

The Rare Earth Metals Recycling Market Analysis also includes detailed regional insights covering North America, Europe, Asia-Pacific, and the Middle East & Africa. Asia-Pacific dominates with approximately 61% market share due to strong electronics manufacturing infrastructure and advanced recycling capabilities. The report highlights increasing adoption of hydrometallurgical extraction technologies currently utilized by nearly 54% of recycling facilities globally because of their high-purity recovery performance. AI-assisted sorting systems improved electronic waste separation efficiency by approximately 41%, while direct magnet recycling technologies reduced processing waste generation by nearly 27%.