Rare Earth Recycling Pilots
Daikin Industries Will Launch a Rare Earth Magnet Recycling Program
Kanesa D — April 21, 2026
Japanese company Daikin Industries, the world’s largest producer of air conditioning systems, is spearheading a multi-partner initiative to recover and recycle rare earth magnets from compressor units, with operations slated to begin in 2027. The program brings together Shin-Etsu Chemical, Hitachi, and Tokyo Eco Recycle to establish a closed-loop supply chain for critical materials.
Under the collaboration, Daikin will oversee the collection of compressors from decommissioned commercial air conditioning systems. Tokyo Eco Recycle, supported by Hitachi’s technical expertise, will handle the disassembly process and extract rare earth magnets from the recovered components.
These materials will then be processed by Shin-Etsu Chemical, which will refine and remanufacture them into new magnets suitable for reuse in future equipment.
