Radify’s sci-fi plasma reactors could break China’s dominance of rare earth elements

Rare earth elements, though small in volume within the global metals market, play a pivotal role on the geopolitical stage, with China leveraging its dominance during trade negotiations. In response, nations like the U.S. are taking proactive measures to diminish this reliance, opening new mines and establishing manufacturing plants for magnets and motors. However, progress has been gradual, as China has entrenched its position over several decades. Zach Detweiler, co-founder and CEO of Radify Metals, highlighted the necessity of a fully integrated supply chain to support an industrial base. He pointed out a critical overlooked aspect: the conversion of metal oxides into pure metals. "That’s this missing middle we’ve identified," he explained. Traditional refining methods rely on heat or water to extract oxygen from metal oxides, yielding pure metals suitable for alloy production, such as those required in stronger magnets and more efficient electronic devices. While effective, these methods are also highly polluting. Radify proposes an alternative process that uses plasma, a superheated mixture of energetic particles, to strip oxygen from metal oxides, producing only water vapor as waste. The startup claims to have made significant advancements in this technology, combining efficient power electronics with innovative engineering to manage metallic powders. Recently, Radify showcased its technology to TechCrunch. The company has successfully secured nearly $3 million in funding from investors such as Overture, Founders Inc., Mana Ventures, and Acequia Capital. Its plasma reactor is designed to convert a variety of metal oxides, focusing initially on dysprosium and neodymium, essential components for magnets and electronics. Inside the reactor, hydrogen is heated to form plasma, into which metal oxide powder is injected, resulting in the removal of oxygen and the production of pure metal. The reactor's adaptable design allows for the production of different metals simply by adjusting operational parameters, potentially lowering manufacturing costs and increasing flexibility. Detweiler expressed confidence in the technology's resilience, stating, "When China undercuts the price of dysprosium, we can pivot to other metals like titanium or zirconium, ensuring we remain competitive in the volatile metals market." Currently, Radify's team of five is perfecting the technology in their Campbell, California lab, aiming to produce multiple kilograms of pure metal each day by year-end. Looking ahead, the startup plans to raise additional funds to construct a pilot reactor capable of producing up to 100 kilograms daily. If Radify can replicate its lab results on a larger scale, it could significantly disrupt the current market dominated by Chinese producers, who sell rare earths at much lower prices. Detweiler estimates that Radify could achieve production costs just 50% higher than China’s prices soon, anticipating an eventual increase in Chinese market prices as well. Beyond rare earth elements, Radify is also investigating other metals, including hafnium, uranium, scandium, and titanium, which have applications across electronics and aerospace industries. The plasma technology may eventually extend to more commonly used metals like iron and aluminum, though it is not yet efficient enough to compete directly with established methods. However, if successful, Detweiler believes it could transform the entire metal production landscape.