Demand for critical metals is rising as the world moves toward cleaner energy technologies, including electric vehicles, wind turbines and solar panels. Rare earth elements are used to make high-efficiency magnets and motors, but their processing can involve complex methods with environmental impacts. Supply is concentrated in a small number of countries, with China controlling about 60% of global rare earth supply.
In the United States and other countries, reliance on imports has created national and economic security concerns, which the Biden administration has raised in connection with supply chain dependency. At the same time, mining waste such as tailings contains unused rare earth metals mixed with hazardous substances. Phoenix Tailings says it is targeting that material stream to extract critical inputs while minimizing toxic byproducts and carbon emissions.
Rare earth demand and supply concentration
Rare earth elements are described as essential for producing high-performance magnets used in wind turbines and for EV motors and other advanced technologies. The United States and other countries have historically relied on imported rare earth materials. China’s share of global supply is estimated at about 60%, according to the company’s stated context.
The same supply concentration is linked to security risks as clean technology demand increases. Mining waste is also highlighted as a source of rare earth metals that remain available but are mixed with hazardous components. Phoenix Tailings’ approach is presented as a way to unlock those materials without relying on conventional extraction pathways.
Water-based extraction and electrochemical separation
Phoenix Tailings has developed a method for harvesting rare earth metals, including nickel, from mining waste. The process uses water and recyclable solvents to extract oxidized metals from tailings. A heating and electrochemical technique is then used to separate metals with minimal waste.
The company states the method avoids traditional harmful practices such as acid leaching and eliminates toxic byproducts. It also describes its pilot production facility in Woburn, Massachusetts, as the only known site producing rare earth metals without toxic waste or carbon emissions when powered by renewable electricity. The company currently offsets energy use through renewable energy contracts.
Planned output and expansion with DOE support
By 2026, Phoenix Tailings plans to produce over 3,000 tons of rare earth materials. The company projects this would represent 7% of total U.S. production in 2023. It also says it is scaling up operations with support from the U.S. Department of Energy (DOE).
The expansion includes increasing the range of metals it can extract, such as nickel and magnesium, both identified as important for the clean energy transition. Phoenix Tailings also links its scaling efforts to broader processing goals beyond rare earths while maintaining compatibility with different ore types.
Founders’ background and early reactor work
Phoenix Tailings was co-founded by Tomás Villalón, Michelle Chao, Nick Myers, and Anthony Balladon. Villalón’s interest began at MIT, where he studied materials science and engineering. His early exposure to sustainable metallurgy came through work at Boston Metal, another MIT spin-off.
In 2018, Villalón met Myers at a Bible study where they discussed electrification challenges and the need for more sustainable ways to produce critical materials. After that conversation, Phoenix Tailings was formed and began experimenting with producing rare earth metals using thermodynamics and kinetics principles learned at MIT.
Mining waste experiments and high-purity focus
The team’s early work involved experimenting with mining waste including “red sludge,” described as tailings rich in valuable metals. After setting up a small prototype reactor in Villalón’s backyard, they extracted rare earth concentrates along with pure iron. That work led to establishing the current facility in Woburn.
The company now processes large quantities of mining waste to produce rare earth metals including neodymium and dysprosium for high-performance magnets. Villalón says refining chemistry is necessary to achieve very high purities, describing purification as dependent on how extraction and purification steps work together.
ARPA-E grants for nickel, magnesium and iron extraction
Phoenix Tailings has received grants from the DOE’s ARPA-E program totaling over $2 million. The grants are intended to further develop its technology beyond rare earth production. One grant focuses on improving extraction of nickel and magnesium from mining waste for battery production.
The company also reports working on a process to extract iron from mining waste without emitting harmful byproducts. It frames mineral ore processing in the U.S. as generating over 1.8 billion tons of waste each year, while stating its processes can be applied across a range of ore types.
Scaling approach across multiple critical metals
Phoenix Tailings says it is prioritizing refinement for rare earths first while aiming to extend its approach to other metals including nickel, magnesium and iron. The company describes its goal as scaling in a way that remains economically viable while meeting environmental sustainability requirements and long-term regulatory standards.
The company also links its work to reducing reliance on foreign monopolies by making rare earth metals domestically to increase national security. As operations scale up, Phoenix Tailings presents its role as supporting an energy transition built on sustainability, resilience and innovation without adding new operational targets beyond those already stated.