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Closing the loop on rare earth magnets: What it means for HVAC


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drian Weichert, R&D director at ADEY, explains how a new industry–academia partnership is tackling the challenges


posed by rare earth materials, which are vital to the performance, efficiency and reliability of HVAC products, as well as the UK’s economy, national security and Net Zero ambitions Their critical importance and supply chain


vulnerabilities, highlighted by their inclusion on the UK’s Critical Minerals List in 2024, raise strategic questions for manufacturers about sourcing resilience and reducing reliance on imported virgin materials.


Critical elements


Magnets containing rare earth elements such as neodymium are widely used in high-performance motors, pumps and magnetic filtration systems. Their strength and stability make them essential in applications where compact design, energy efficiency and long service life are critical. For manufacturers like ADEY, whose products are built around magnetic filtration technology, these materials sit at the core of product performance. However, as demand for electrification and


low-carbon technologies increases globally, so too does scrutiny around how rare earth materials are sourced – and how secure those supply chains are. The recent opening of a commercial-scale rare earth magnet recycling facility at Tyseley Energy Park in Birmingham offers one possible answer.


Closing the loop


Officially opened at the end of January, the facility – developed through collaboration between the University of Birmingham and HyProMag Ltd – brings short-loop magnet recycling from research into industrial reality. Unlike conventional recycling methods, which


typically reduce materials back to elemental form, short-loop recycling retains much of the magnet’s original microstructure. End-of-life magnets are processed and re-manufactured into new magnets without returning fully to mined raw material. This approach significantly lowers energy use and offers the potential to reduce lifecycle carbon emissions while preserving magnetic performance. For the past several years, ADEY has supported


the research programme by supplying magnets for recycling and contributing application-based testing. As a manufacturer operating in real-world heating system environments, its involvement has focused on ensuring that recycled magnets meet the durability and reliability standards required in HVAC applications. The significance of the Tyseley facility lies in its


8 April 2026


commercial capability. Recycled magnets are no longer confined to laboratory trials; they can now be manufactured within the UK. For manufacturers like ADEY, that rely on magnetic components, this marks an exciting step towards a more circular material model.


From theory to validation


Environmental potential alone is not enough to secure adoption within HVAC. Performance remains paramount. In heating systems, magnets must operate


consistently under fluctuating temperatures, exposure to system debris and prolonged magnetic loading. Any recycled alternative must match virgin material in terms of magnetic strength, thermal stability, corrosion resistance and long-term durability. Validation therefore plays a central role in


translating research into industry confidence. By contributing practical testing feedback, ADEY has helped ensure that recycled magnets are assessed not only against laboratory benchmarks, but against the operational realities of HVAC systems. This real-world perspective is essential in refining processing methods and quality controls so that recycled components meet the standards installers and end users expect.


Implications for future supply chains


For the HVAC sector, the implications extend beyond a single facility. Domestic recycling capability introduces the potential to diversify supply chains and reduce exposure to global material volatility. While recycled feedstock is unlikely to replace primary mining entirely, it can form part of a broader resilience strategy - particularly for components identified as critical to the UK’s energy transition.


There are also carbon considerations. As embodied carbon becomes an increasingly prominent factor in building services specification, material origin is coming under greater scrutiny. Access to recycled magnetic materials could contribute to lower lifecycle emissions across products that incorporate them, complementing ongoing efforts to improve operational efficiency. For ADEY, involvement in the programme reflects a wider shift in how manufacturers are approaching sustainability, looking beyond product performance alone to consider upstream material impacts and long-term circularity. The Tyseley facility demonstrates how sustained


collaboration between academia and industry can convert materials research into operational infrastructure. For HVAC manufacturers, it offers an early example of what a more circular supply ecosystem might look like - one where critical materials are recovered, reprocessed and returned to productive use within the UK. Rare earth magnets may be small components


within complex heating systems, but their strategic importance is growing. As the industry navigates decarbonisation, electrification and supply chain uncertainty, initiatives such as short-loop recycling suggest that innovation is not limited to system design, it is reshaping the materials that underpin them.


Above; Adrian Weichert - R&D director at ADEY


Left & below: The official opening of the rare earth magnet recycling facility at Tyseley Energy Park


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