Highlights

• Emerging startups are attracting significant VC investment in rare earth recycling and critical mineral extraction.
• Less than 1% of rare earth elements are currently recycled, presenting a massive untapped market opportunity.
• Rare earth recycling is increasingly viewed as a strategic national security issue beyond just clean technology.

Joanna Glasner’s Crunchbase feature (opens in a new tab) rightly identifies a rising tide of VC money flowing into startups focused on rare earth recycling, battery recovery, and critical mineral extraction. Standouts like Ascend Elements (opens in a new tab), Redwood Materials (opens in a new tab), and Phoenix Tailings (opens in a new tab) are well-documented players, collectively raising billions in equity and debt over recent years. The article also correctly highlights Cyclic Materials (opens in a new tab) and **Tozero (opens in a new tab)**—part of a new generation of rare earth recyclers expanding outside U.S. borders.

From a macro standpoint, Glasner accurately captures the why: geopolitical anxiety, clean energy demand, and the West’s scramble to counter China’s near-total dominance in rare earth refining. The piece also commendably highlights the crucial point that less than 1% of rare earth elements are currently recycled, making this a vast and underserved opportunity space.

Where the Coverage Gets Slippery: Temporal Tilt and Geopolitical Blind Spots

However, some framing issues deserve scrutiny. The article suggests that the current momentum is a result of the peak in major U.S. recycling and rare earth funding rounds between 2021 and 2023. Recent activity is real, but not as frothy as the piece suggests—especially with the Trump administration scaling back green subsidies in 2025, a factor Glasner glosses over with just one sentence. This fact should not be minimized.  Elon Musk understood the ramifications of the Big Beautiful Bill.

Also missing? A serious look at China’s export controls, which loom large over many of these startups. Torngat Metals (opens in a new tab) is mentioned for its debt raise and "caribou avoidance plan"—but not for its strategic aim to bypass China's heavy rare earth chokehold. Nor does Glasner explore the technical and commercial hurdles these startups face in scaling pilot projects to refinery-grade throughput.

The Big Miss: Strategic Framing

Most critically, Crunchbase treats rare earth startups like any other cleantech trend—ignoring their national security implications. MP Materials’ recent Department of Defense stake and Apple’s $500M magnet deal aren't just good optics—they’re signs of a tectonic policy shift. When critical minerals become tools of foreign policy (as China has made clear with dysprosium and terbium controls), this stops being a “clean tech” story and becomes an industrial sovereignty story.

Final Thoughts

Crunchbase’s roundup is informative and upbeat—but risks flattening a deeply strategic, high-stakes sector into a typical VC watchlist. Investors and policymakers alike need to see beyond the pitch decks: rare earths aren't just the next tech trend. They're the raw power behind energy, defense, and economic security.