At-Scale, HDDs Rare Earth Material Capture Program Successfully Launched in United States

Essential to cloud data center infrastructure, HDDs are complex devices that blend material science, mechanical engineering and physics. As part of its innovation, HDDs use a range of rare earth elements (REEs) like Neodymium (Nd), Praseodymium (Pr) and Dysprosium (Dy), prized for their magnetic properties to help HDDs precisely read and write data. Yet, traditional recycling methods recover only a fraction of these valuable materials, often missing rare earths entirely, leading to unnecessary waste.

In a multi-party pilot program, Western Digital Corp., in collaboration with Microsoft Corp., Critical Materials Recycling, Inc. (CMR) and PedalPoint Recycling has taken a major step toward closing that loop. Together, the companies transformed ~50,000 pounds of shredded end-of-life HDDs, mounting caddies and other materials into critical high-value materials, all while significantly reducing environmental impact. This pioneering process of creating a new advanced sorting ecosystem with an eco-friendly non-acid process not only recaptures essential rare earth elements but also extracts metals like gold (Au), copper (Cu), aluminum (Al) and steel, feeding them back into the U.S. supply chain, supporting industries that rely on these resources – such as electric vehicles, wind turbines, and advanced electronics. When scaled worldwide, this new recycling process could return a lot of recovered rare earths to the U.S. supply pool, drastically reducing the need for virgin material mining detrimental to people and planet. ⁽¹⁾ Today, most primary production (>85%) of REEs occurs outside of the U.S. ^(2,3) and the current domestic recycling rate for REEs is very low (<10%) ⁽⁴⁾.

HDDs produced by Western Digital and in use at Microsoft data centers are then shredded and sorted at PedalPoint Recycling
before undergoing acid-free dissolution at CMR where rare earth oxides are extracted, then returned to the U.S.
supply pool. The advanced recycling process these partners created has been emulated by other industries
to extract rare earths from their hardware, returning even more materials to the U.S. supply
(schema source: Western Digital Corp.)

The materials for the project were collected from several Microsoft data centers located in the United States. This multi-party pilot showcases a highly efficient, economically viable system that achieved an impressive ~90% high-yield recovery of elemental and rare earth materials that can be used by the U.S. supply chain. Advanced chemical processes, combined with meticulous segregation of components, also allowed the system to recapture ~80% by mass of the feedstock turning potential waste into valuable assets.

The innovation doesn’t stop there. Based on Life Cycle Analysis methodology, there is an estimated 95% reduction in greenhouse gas emissions compared to traditional mining and processing practices. By performing the entire Rare Earth Oxide (REO) production process domestically, the program minimizes transportation emissions and boosts the resilience of the U.S. supply chain, decreasing dependency on imported materials.

The ripple effects can be significant. By enabling industries to access high-purity, more sustainably sourced materials, this program can reduce the environmental footprint not only of data centers but also of the industries that depend on rare earth elements.

“This initiative sets a new standard for end-of-life data storage management,” said Jackie Jung, VP, global operations strategy and corporate sustainability, Western Digital. “In today’s rapidly evolving data landscape, innovation must extend beyond a device’s lifecycle. Western Digital and its partners are leading the way, transforming retired storage devices into critical resources that power our future – while protecting the planet and strengthening the economy and U.S. supply chain. This project isn’t just a milestone; it’s a blueprint for large-scale, domestic recycling of essential metals and materials that will drive sustainable progress for years to come.”

“This is a tremendous effort by all parties involved. This pilot program has shown that a sustainable and economically viable end-of-life (EOL) management for HDDs is achievable,” said Chuck Graham, corporate VP, cloud sourcing, supply chain, sustainability, and security, Microsoft. “HDDs are vital to our data center infrastructure, and advancing a circular supply chain is a core focus for Microsoft. We’re proud to be a part of this initiative with our partners, creating opportunities to reuse and recycle materials, reduce waste, and lower carbon impacts across the industry.”

The environmentally friendly, acid-free dissolution recycling (ADR) technology used in this project was invented and initially developed at the Critical Materials Innovation (CMI) Hub. “Scaling the ADR technology from lab to demonstration scale in just eight years is a testament to the incredible work by the team at CMR. This project is significant because HDD feedstock will continue to grow globally as AI continues to drive the demand for HDD data storage. CMI is proud to have supported the initial development, along with the Ames National Laboratory, to support this program’s growth and reach as a viable green approach to recover rare earth elements using environmentally friendly chemistry,” said Tom Lograsso, director, CMI.

“At PedalPoint Recycling, our mission is to secure and properly recover strategic metals from recycling. This is an exciting project that clearly demonstrates the positive impact companies can have on recycling when they partner and collaborate,” said Brian Diesselhorst, CEO, PedalPoint Recycling

⁽¹⁾E.Sanchez Moran, D. Prodius, I.C. Nlebedim, and M. Mba Wright, Rare-Earth Elements Recovery from Electronic Waste: Techno-Economic and Life Cycle Analysis, ACS Sustain Chem Eng, Sep. 2024.
⁽²⁾ Rare earths: production share by country 2023 | Statista. Accessed: Mar. 16, 2024:
⁽³⁾ USGS (Daniel J. Cordier), Mineral Commodity Summaries – Rare Earths, Jan. 2022.
⁽⁴⁾ E. Wayman, Recycling rare-earth elements is hard — but worth it, ScienceNews Explores, May 04, 2023.