The Rise of Critical Minerals Recycling Startups and Their Potential to Disrupt Global Supply Chains

The global energy transition hinges on a paradox: the urgent need for clean technologies like electric vehicles and renewable energy systems, which in turn depend on critical minerals such as lithium, cobalt, and rare earth elements. Yet, the supply chains for these materials remain heavily concentrated in China, creating vulnerabilities that threaten both economic and national security. Enter a new wave of U.S.-based recycling startups, leveraging cutting-edge technologies to disrupt this status quo. These innovators, supported by strategic investors and federal policy, are not only addressing environmental challenges but also reshaping the geopolitical landscape of resource access.

The U.S. Innovation Frontier: Valor and DISA Technologies

At the forefront of this transformation is Kunal Sinha’s Valor, a startup founded in 2025 by the former head of Glencore’s recycling division. Valor’s technology, developed in collaboration with the University of Illinois at Urbana-Champaign, employs ligands—molecules that selectively bind to specific metals—to extract critical minerals from sources like recycled batteries, deep-sea nodules, and hard rock ores. According to a report by LSE, this method is claimed to be at least ten times cheaper and faster than traditional hydrometallurgical processes, with no waste byproducts [1]. While still in the testing phase, Valor aims to commercialize the technology for five metals within two to three years, backed by a planned demonstration plant.

Parallel to Valor’s innovation is DISA Technologies, a company supported by Valor Equity Partners, a venture capital firm with a strategic focus on sustainability and energy resilience. DISA’s patented High-Pressure Slurry Ablation (HPSA) technology enables the recovery of critical minerals from mining operations and the remediation of legacy uranium waste. In 2025, DISA closed an oversubscribed $30 million Series A2 funding round, accelerating the commercial deployment of HPSA [2]. This investment underscores the growing confidence in technologies that address both environmental remediation and resource scarcity.

Glencore’s Strategic Shift: From Mining to Circular Solutions

The transition is not limited to startups. Traditional mining giants like Glencore are also pivoting toward circularity. In 2025, Glencore injected an additional $75 million into Li-Cycle, a battery recycling company, building on its 2022 investment of $200 million [3]. This partnership positions Glencore as a feedstock supplier for Li-Cycle’s Spoke facilities and a reagent provider for future Hub facilities, which aim to extract raw materials from battery black mass. As stated by Fastmarkets, this move aligns with Glencore’s broader strategy to integrate sustainable circularity into the battery supply chain, reducing reliance on primary mining while capitalizing on the surge in electric vehicle demand [3].

U.S. Policy as a Catalyst

Federal support is amplifying these private-sector efforts. The U.S. Department of Energy (DOE) has announced a $500 million grant program to bolster domestic battery materials processing and recycling, reflecting a national imperative to reduce dependence on foreign sources [1]. This initiative dovetails with the investments of firms like Valor Equity Partners, which back technologies that align with both environmental and national security goals. For instance, DISA’s HPSA technology is advancing toward an NRC Service Providers License, a regulatory milestone expected by September 2025 [2].

The Investment Case: Geopolitical Independence and Market Potential

The convergence of technological innovation, corporate strategy, and policy support creates a compelling investment narrative. By 2030, the critical minerals recycling market is projected to grow at a compound annual rate exceeding 15%, driven by decarbonization mandates and supply chain risks. Startups like Valor and DISA, along with partnerships such as Glencore-Li-Cycle, are positioned to capture this growth while addressing a critical geopolitical challenge: reducing the U.S.’s reliance on China for 80% of rare earth processing and 60% of lithium refining.

Conclusion

The rise of critical minerals recycling startups represents more than a technological shift—it is a strategic imperative for reshaping global supply chains. For investors, early-stage opportunities in this sector offer dual benefits: financial returns and the potential to fortify U.S. energy independence. As the world races toward a low-carbon future, the companies and technologies that enable a circular economy will define the next era of industrial innovation.

Source:[1] LSE, [Glencore’s former head of recycling launches critical minerals processing firm] [https://www.lse.co.uk/news/glencores-former-head-of-recycling-launches-critical-minerals-processing-firm-zoidhi9jxilybhj.html][2] PR Newswire, [DISA Technologies Closes Oversubscribed $30M Series A2 Round] [https://www.prnewswire.com/news-releases/disa-technologies-closes-oversubscribed-30m-series-a2-round-to-accelerate-mineral-processing--uranium-remediation-solutions-302523431.html][3] Fastmarkets, [Glencore Injects $75 Million into Battery Recycler Li-Cycle] [https://www.fastmarkets.com/insights/glencore-injects-75-million-into-battery-recycler-li-cycle/]