As the world moves towards cleaner energy solutions, there is an increasing demand for critical metals, particularly rare earth elements, which are essential for technologies like electric vehicles (EVs), wind turbines and solar panels. However, the processing of these materials often involves complex, environmentally harmful methods, and most of the supply is concentrated in a few countries, notably China. In response to these challenges, Phoenix Tailings, a company co-founded by MIT alumni, is pioneering an innovative, sustainable process to extract rare earth metals and other critical materials from mining waste without producing toxic byproducts or carbon emissions.
Tackling the rare earth shortage
Rare earth elements (REEs) are crucial for producing high-efficiency magnets in wind turbines, EV motors, and other advanced technologies. However, the U.S. and other countries have historically relied on imports for these materials, with China controlling about 60% of the global supply. As demand for green technologies skyrockets, the Biden administration has raised alarms over the national and economic security risks associated with this supply chain dependency.
At the same time, the world is sitting on vast amounts of unused rare earth metals found in mining waste, such as tailings, which contain valuable minerals mixed with hazardous substances. This represents an untapped resource, and Phoenix Tailings aims to unlock this potential while minimizing environmental harm.
A sustainable solution for rare earth extraction
Phoenix Tailings has developed a groundbreaking method for harvesting rare earth metals, including nickel, from mining waste. The company’s process uses water and recyclable solvents to extract oxidized metals from tailings, followed by a heating and electrochemical technique that separates the metals with minimal waste. This method avoids traditional harmful mining practices, such as acid leaching and eliminates toxic byproducts.
The company’s pilot production facility in Woburn, Massachusetts, is the only known site in the world that produces rare earth metals without toxic waste or carbon emissions, provided that the electricity used is sourced from renewable energy. Phoenix Tailings currently offsets its energy use through renewable energy contracts.
By 2026, Phoenix Tailings plans to produce over 3,000 tons of rare earth materials, representing 7% of total U.S. production in 2023. With support from the U.S. Department of Energy (DOE), the company is scaling up its operations and expanding the range of metals it can extract, including nickel and magnesium—both of which are vital for the clean energy transition.
The vision behind Phoenix Tailings
Phoenix Tailings was co-founded by Tomás Villalón, Michelle Chao, Nick Myers, and Anthony Balladon, all of whom share a deep interest in sustainable materials science. Villalón’s interest in the field began at MIT, where he studied materials science and engineering. His early exposure to sustainable metallurgy through his work at Boston Metal, another MIT spin-off, sparked his interest in solving the challenges of rare earth production.
In 2018, Villalón met Myers at a Bible study, where the two began discussing the global challenges of electrification and the need for more sustainable methods to produce critical materials. After that conversation, Villalón decided to take action, and Phoenix Tailings was born. They initially experimented with a system for producing rare earth metals by applying fundamental thermodynamics and kinetics principles that Villalón had learned at MIT.
Innovation in action
The team’s early work involved experimenting with mining waste, including “red sludge,” a type of tailings rich in valuable metals. After setting up a small prototype reactor in Villalón’s backyard, they successfully extracted rare earth concentrates along with pure iron. This breakthrough led to the establishment of Phoenix Tailings’ current facility in Woburn, where the team now processes large quantities of mining waste to produce rare earth metals, including neodymium and dysprosium, which are crucial for manufacturing high-performance magnets.
“We’ve focused on refining the chemistry to ensure we achieve very high purities, which is a critical challenge with rare earths,” explains Villalón. “It’s not just the chemistry that’s important—it’s about creating a system where every step, from extraction to purification, works seamlessly together.”
Expanding capabilities and impact
In addition to producing rare earth elements, Phoenix Tailings has received grants from the DOE’s ARPA-E program, totaling over $2 million, to further develop its technology. One of these grants is aimed at improving the extraction of nickel and magnesium from mining waste, both of which are essential for battery production. The company is also working on a process to extract iron from mining waste without emitting harmful byproducts.
With mining and processing mineral ores generating over 1.8 billion tons of waste in the U.S. alone each year, Phoenix Tailings sees a massive opportunity to clean up the environment while producing critical materials for the clean energy economy. The company’s processes are compatible with a wide range of ore types, allowing it to tackle a variety of mining waste streams.
“We’re focused on refining our processes for rare earths first, but our goal is to extend our approach to other metals like nickel, magnesium, and iron,” says Villalón. “There’s no reason we can’t scale this, and we’re determined to make sure it’s done in a way that’s economically viable, environmentally sustainable and compliant with long-term regulatory standards.”
Looking ahead
Phoenix Tailings’ work has far-reaching implications not just for clean energy but for global geopolitics as well. By making rare earth metals domestically, the company aims to reduce reliance on foreign monopolies and increase national security. As the world continues its transition to clean energy, Phoenix Tailings is playing a crucial role in ensuring the materials needed for this transformation are sourced sustainably and efficiently.
“We want to be part of the solution to a global problem,” says Villalón. “By rethinking how we source and process critical materials, we can ensure that the future is not only cleaner but also more resilient.”
As the company scales up its operations, the implications for both the environment and the energy transition are profound. Phoenix Tailings is helping to ensure that the future of clean energy is built on a foundation of sustainability, resilience and innovation.
