South Korea Rare-Earth Magnet Recycling Project Starts in 2026

South Korea Launches Rare-Earth Magnet Recycling Pilot

South Korea rare-earth magnet recycling is moving into a pilot phase as the Ministry of Climate, Energy and Environment reaches an agreement with the Korea Environment Corporation, Hyundai Motor Company, and the Korea Automobile Dismantling and Recycling Association. The project is designed to establish a domestic recycling system for rare-earth permanent magnets contained in drive motors from end-of-life vehicles. It will run from September 2026 through September 2027. The initiative addresses a current gap in South Korea's recycling infrastructure, where systems for separating, recovering, and recycling these magnets have not yet been well established.

Drive Motors Contain Valuable Rare-Earth Magnets

Drive motors used in electric vehicles and hybrid vehicles contain approximately 0.75 to 1.5 kilograms of rare-earth permanent magnets, with the amount varying according to vehicle model. Under the recycling support project for general end-of-life vehicles, the participating organizations will establish a collection and distribution system that supplies drive motors removed during vehicle dismantling to domestic recycling companies. This process is intended to create a more organized route for recovering materials that are currently difficult to separate and recycle at scale. The initiative therefore connects vehicle dismantling activities with downstream domestic recycling operations.

Hyundai Will Support Vehicle-Specific Dismantling

Hyundai Motor Company will provide information identifying the location and presence of rare-earth permanent magnets in each vehicle model, along with methods for removing drive motors. This information is intended to support dismantling operations by giving recycling participants vehicle-specific guidance for locating and removing the relevant components. The approach recognizes that drive-motor designs and magnet placement can differ between vehicle models. Providing this information as part of the pilot could help participating recyclers evaluate how vehicle-specific dismantling procedures affect the collection of drive motors and the subsequent recovery of valuable materials.

Closed-Loop Demonstration Will Test Recovery Processes

A separate closed-loop demonstration project will use Hyundai Motor test vehicles developed for new vehicle development to examine the recycling process from beginning to end. The participating organizations will use a regulatory sandbox to verify drive-motor dismantling and separation, followed by sorting and recovery of rare-earth permanent magnets, copper, and other valuable materials. The demonstration will specifically assess the safety of dismantling drive motors, recovery rates for valuable materials, and the practical applicability of separation and recovery technologies at recycling sites. These evaluations are intended to provide operational evidence for improving the domestic recycling process.

South Korea Estimates Significant Annual Recovery Potential

The Ministry of Climate, Energy and Environment estimates that up to 15 metric tons of rare-earth permanent magnets could be recovered each year from approximately 14,000 end-of-life electric and hybrid vehicles. The estimate illustrates the potential material volume available through a more organized domestic collection and recycling system. The pilot will provide an opportunity to assess how effectively drive motors can be collected from dismantled vehicles and processed for material recovery. The results could also help identify practical requirements for handling valuable materials at recycling facilities while maintaining appropriate safety procedures during dismantling and separation activities.

Regulatory Changes Could Follow Demonstration Results

Based on the results of the demonstration, the ministry plans to improve related regulations, including measures designed to promote the collection and transfer of drive motors during vehicle dismantling. The ministry also plans to establish recycling standards covering permanent magnets and other valuable materials. The regulatory work would connect the pilot's operational findings with longer-term requirements for domestic recycling. By testing collection, dismantling, separation, and recovery before considering regulatory improvements, the project is positioned to provide practical information about the processes and standards needed to support greater recovery of rare-earth permanent magnets from end-of-life vehicles in South Korea.

Industry Impact & Outlook

The pilot could influence how end-of-life electric and hybrid vehicles are dismantled and how rare-earth permanent magnets and other valuable materials move from dismantling facilities to recycling companies in South Korea. Its results may provide practical evidence for recycling standards, drive-motor collection procedures, and safer dismantling practices, while the estimated recovery potential highlights the material value involved. The involvement of the Korea Environment Corporation, South Korea, Hyundai Motor Company, and the Korea Automobile Dismantling and Recycling Association also creates a coordinated framework spanning government, automaker, and recycling activities. Further regulatory action will depend on the demonstration findings and the effectiveness of the tested recovery processes.

Frequently Asked Questions

What is South Korea's rare-earth magnet recycling pilot designed to achieve?
The pilot is designed to establish a domestic system for collecting, dismantling, separating, and recycling rare-earth permanent magnets from drive motors in end-of-life electric and hybrid vehicles. Running from September 2026 to September 2027, the project will test collection and distribution procedures, vehicle-specific dismantling information, and closed-loop recovery technologies. A regulatory sandbox will support testing of the complete recycling process, including recovery of rare-earth permanent magnets, copper, and other valuable materials. The results will also inform potential improvements to regulations and recycling standards for these materials.