On 20 January 2026, Canada Growth Fund Inc. (CGF), a CAD 15bn federal Crown investment vehicle, invested US$25 million into Cyclic Materials Inc., a Kingston, Ontario-based rare-earth recycler. The investment forms part of a US$75 million Series C preferred-equity round led by T. Rowe Price Associates, with continued participation from existing investors; CGF's US$25 million contributes roughly one-third of the total raise. Proceeds expand Cyclic's Kingston Center of Excellence and Canada-based R&D footprint and accelerate commercial deployment of its Hub-and-Spoke recycling process, which recovers magnet metals (rare-earth oxides) from end-of-life products and manufacturing scrap at a stated 98%+ recovery rate.

Analyst notesShow

Mechanism

Cyclic Materials recovers rare-earth elements (magnet metals used in EV motors, wind turbines, robotics and defense systems) from end-of-life magnets and manufacturing waste via its proprietary Hub-and-Spoke process, producing a mixed rare-earth oxide (rMREO) intermediate. This is a recycling/secondary-supply play rather than primary mining — it targets the same rare-earth-magnet chokepoint as primary extraction actions but builds a non-mined, non-China-routed feedstock alternative.

The CGF investment is one tranche of a US$75 million Series C round led by T. Rowe Price, with CGF contributing US$25 million (about a third). This is CGF's second rare-earth/critical-minerals-recycling-adjacent equity deal in the register within weeks of the Mangrove Lithium financing ([[2026-01-15-canada-growth-fund-mangrove-lithium-financing]]), reinforcing CGF's pattern of taking minority equity/structured-financing positions in Canadian critical-minerals midstream companies rather than issuing outright grants.

Severity set at 2 (quant): a US$25 million single-company equity tranche, smaller in scale than the US$65-85m Mangrove Lithium CGF financing and well below the CAD 500m-2bn program-level Canadian critical-minerals funds in the same theme ([[2025-12-12-canada-ontario-critical-minerals-processing-fund]], [[2026-03-04-canada-critical-minerals-sovereign-fund]]).

Downstream implications

Adds a rare-earth-magnet recycling node to Canada's critical-minerals

build-out, complementing primary extraction and refining investments elsewhere in the CGF portfolio.

T. Rowe Price's lead role signals institutional-investor appetite for

Western rare-earth secondary-supply plays independent of government co-investment.

Cyclic also operates a planned commercial-scale facility in Mesa,

Arizona — watch for a parallel US-side policy or financing action (DPA Title III, DoD, or state-level) tied to that site.

Open questions

Scale-up timeline and capacity (tonnes/year of rMREO output) for the

Kingston Center of Excellence beyond the R&D footprint this tranche funds.

Whether CGF's equity stake carries Canadian-content or offtake

conditions consistent with its other critical-minerals deals.

Sources

Primary: Canada Growth Fund — Canada Growth Fund Invests US$25 Million in Cyclic Materials to Strengthen Canada's Rare Earth Supply Chain

Secondary: Global Trade Alert — state act 96197 · The Globe and Mail — Canada Growth Fund invests $25-million in Ontario rare earths recycling company

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Mechanism

Downstream implications

Adds a rare-earth-magnet recycling node to Canada's critical-minerals

build-out, complementing primary extraction and refining investments elsewhere in the CGF portfolio.

T. Rowe Price's lead role signals institutional-investor appetite for

Western rare-earth secondary-supply plays independent of government co-investment.

Cyclic also operates a planned commercial-scale facility in Mesa,

Arizona — watch for a parallel US-side policy or financing action (DPA Title III, DoD, or state-level) tied to that site.