Phoenix Tailings is a Massachusetts-based startup that’s processing critical minerals with zero waste.
“Tailings” describes the rubble that’s left over after minerals like iron have been extracted from mined ore.
Phoenix Tailings is extracting rare earth metals from that rubble.
They mix the tailings with a water-solvent mixture, add molten salts, and heat it to approximately 1,300° F. The mixture is then pumped over
membranes to capture the rare earth metals.
The solvents and the salt can be reused. The remaining tailings are buried.
Phoenix Tailings is currently focused on the rare earth metals used in magnets in the automotive industry. This includes neodymium, dysprosium, and a ferro-dysprosium alloy.
The startup’s first plant, located in Burlington, MA, produces 40 metric tons of rare earth metals annually, while a larger plant in New Hampshire, which is predicted to produce 400 metric tons per year, just opened in late 2025.
And another plant is in the works.
Phoenix Tailings raised $40.2M in funding this year which will be used to scale production of rare earth elements.
What's Next
Phoenix Tailings is part of the Critical Minerals meta trend.
The most recent report from the USGS listed 60 critical minerals.
By definition, these minerals serve essential functions in the economic security of the U.S. and have vulnerable supply chains.
Critical minerals are used in various types of technology like wind turbines, electric
cars, satellites, military jets, and smartphones.
Price fluctuations and trade issues make the market for critical minerals unpredictable.
The U.S. imports 100% of the country’s supply of 12 critical minerals and imports 50% of the country’s supply of 28 critical minerals.
Meanwhile, China holds an average market share of 70% when considering 20 of the top critical minerals.
In addition, a recent analysis found that three-quarters of critical minerals have greater price volatility than
oil.
Experts warn that even if the U.S. were to ramp up infrastructure immediately, production wouldn’t reach significant levels for eight to ten years.
