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Partnership to Capture Rare Earth Elements from Disk Drives

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April 17, 2025

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Western Digital, Microsoft, Critical Materials Recycling, and PedalPoint Recycling have joined forces in a groundbreaking collaboration aimed at rare earth element recovery and circular recycling. This innovative programme utilizes environmentally friendly chemistry to bolster critical rare earth element reserves and enhance supply chains. With over 85% of rare earth element production happening outside the U.S. and a recycling rate below 10% domestically, this initiative is crucial for sustainability.

Hard disk drives (HDDs) play a vital role in cloud data centre infrastructure, incorporating rare earth elements like Neodymium, Praseodymium, and Dysprosium for their magnetic properties. However, traditional recycling methods often fail to recover these valuable materials efficiently, leading to unnecessary waste. The collaborative effort aims to address this issue by transforming end-of-life HDDs and other materials into high-value resources.

Through this partnership, approximately 50,000 pounds of shredded end-of-life HDDs have been processed using an advanced sorting ecosystem and an eco-friendly non-acid process. This approach not only recaptures rare earth elements but also extracts metals like gold, copper, aluminium, and steel, contributing to the U.S. supply chain. The pilot project demonstrates a high-yield recovery rate of around 90% for elemental and rare earth materials.

By conducting the entire Rare Earth Oxide (REO) production process domestically, the initiative aims to reduce greenhouse gas emissions significantly compared to traditional mining practices. This approach enhances the resilience of the U.S. supply chain by decreasing reliance on imported materials. The project also highlights the economic viability of sustainable end-of-life management for HDDs, showcasing a circular supply chain model that benefits both the environment and the economy.

Jackie Jung, vice president of Global Operations Strategy and Corporate Sustainability at Western Digital, emphasized the importance of this initiative in shaping the future of data storage management. She highlighted the transformative impact of repurposing retired storage devices into valuable resources that drive sustainable progress. Chuck Graham, Corporate Vice President of Cloud Sourcing, Supply Chain, Sustainability, and Security at Microsoft, echoed these sentiments, underlining the significance of advancing a circular supply chain for HDDs.

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