Western Digital, in partnership with Microsoft, Critical Materials Recycling (CMR), and PedalPoint Recycling, has launched a large-scale pilot programme in the United States to recover rare earth elements (REEs) from used hard disk drives (HDDs). This initiative represents a major milestone in circular economy innovation, helping to secure domestic material supply chains while reducing environmental impact.
The project processed approximately 50,000 pounds of shredded HDDs, mounting caddies, and related components. Using an acid-free, environmentally friendly method, the team extracted valuable materials such as Neodymium, Praseodymium, and Dysprosium—essential to HDD performance due to their magnetic properties. Additional metals including gold, copper, aluminium, and steel were also recovered and reintegrated into the US supply chain.
With over 85% of the world’s rare earth production occurring outside the US, and domestic recycling rates still below 10%, the programme offers a sustainable, scalable solution. The pilot highlights how high-value elements can be reclaimed from retired hardware, easing reliance on mining operations that are often environmentally destructive.
High recovery rates and environmental benefits
The materials for the pilot were sourced from several Microsoft data centres across the United States. By combining advanced chemical processes with meticulous sorting, the programme achieved around 90% recovery of rare earth and elemental materials. Approximately 80% of the input feedstock was successfully converted into reusable material.
One of the key environmental advantages of the project is its significantly lower emissions. A Life Cycle Analysis found that the programme delivers a 95% reduction in greenhouse gas emissions compared to traditional mining and refining methods. By producing rare earth oxides domestically, the process also cuts transport-related emissions and improves supply chain resilience.
“This initiative sets a new standard for end-of-life data storage management,” said Jackie Jung, vice president of Global Operations Strategy and Corporate Sustainability at Western Digital. “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 US supply chain.”
Chuck Graham, corporate vice president of Cloud Sourcing, Supply Chain, Sustainability, and Security at Microsoft, added, “This pilot programme has shown that a sustainable and economically viable end-of-life management for HDDs is achievable. We’re proud to be part of this initiative, which helps reduce waste and lower carbon impacts across the industry.”
Innovation driven by collaboration and green chemistry
The project was powered by Acid-free Dissolution Recycling (ADR) technology, initially developed at the Critical Materials Innovation (CMI) Hub. This method avoids harmful acids while recovering rare earths and metals with high efficiency. “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,” said Tom Lograsso, director of CMI. “As AI drives demand for HDD storage, this green approach becomes increasingly essential.”
PedalPoint Recycling played a crucial role in recovering the materials. “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 of PedalPoint Recycling. “Our mission is to secure and properly recover strategic metals, and this pilot shows it can be done at scale.”
With increasing global demand for data storage and sustainable technologies, this initiative sets the foundation for broader adoption of responsible material recovery. By keeping valuable resources in use and reducing the need for virgin mining, the pilot offers a blueprint for scaling up domestic recycling efforts that support both economic and environmental goals.
