Daikin Industries, Shin-Etsu Chemical, Hitachi and Tokyo Eco Recycle have started a cross-industry collaboration to build what they describe as Japan’s first domestic circular scheme for recovering and recycling rare earth magnets from compressors used in Daikin commercial air conditioners replaced during repair and overhaul work in Japan. The partners said the initiative is intended to support a circular economy and reduce environmental impact across the supply chain.
Under the scheme, Daikin will collect compressors from its commercial air conditioners, while Tokyo Eco Recycle will handle dismantling, demagnetization and extraction of the rare earth magnets. Based on technical information provided by Daikin, Tokyo Eco Recycle and Hitachi will combine recycling expertise developed through years of work on household compressors with AI-based image recognition and robots to improve dismantling processes that vary by model.
The companies said they will also use resonance attenuation demagnetization technology, which does not directly emit CO2, to reduce environmental impact. Shin-Etsu Chemical will then use the extracted rare earth magnets as recycled material to manufacture new rare earth magnets. The partners plan to develop automated equipment during 2026 and start full-scale operation of the scheme in 2027.
The companies said the scheme could later be expanded as a new business model by building partnerships with companies and organizations that support the project’s vision, including Hitachi Global Life Solutions, which is also active in the commercial air conditioning business. They added that the broader aim is to contribute not only to the air conditioning industry but also to green transformation across manufacturing.
