Dana TM4 and NeoCtech are partnering on a project aimed at recovering rare earth elements from electric vehicle motors, including those used in zero-emission trucks.

The $3.5-million initiative will develop and demonstrate a pilot-scale process for dismantling and recycling electric motors, with a focus on recovering magnets and extracting high-purity rare earth elements. The Quebec government is contributing $1 million through InnovÉÉ, the province’s industrial research consortium.

Boucherville, Que.-based Dana TM4 manufactures electric propulsion systems used in commercial vehicles, including battery-electric trucks produced by Kenworth, Peterbilt and International. Montreal-based NeoCtech specializes in recovering rare earth elements from permanent magnets used in electric motors.

According to InnovÉÉ, most end-of-life electric motors are currently shredded and processed as mixed metal scrap, resulting in the loss of critical minerals while increasing energy consumption and environmental impacts.

The partners plan to establish a pilot recycling process capable of handling about 10 kg of material per day. The project will focus on selectively recovering magnets from electric motors and extracting rare earth elements for potential reuse in future products.

Beyond recycling existing motors, the initiative is also intended to influence the design of future electric propulsion systems by incorporating sustainability principles that make motors easier to disassemble and recycle at the end of their service life.

“I am delighted to see that local businesses are distinguishing themselves by developing innovative solutions,” said Daniel Bernard, Quebec’s minister for the economy and small and medium-sized enterprises, when announcing funding for the project and seven other technology initiatives.

The effort comes as demand for rare earth elements continues to grow alongside the adoption of electric vehicles. These materials are essential components in the permanent magnets used in many electric drive motors.