MidAmerican Energy is currently dismantling aging wind turbines at its Highland wind farm in O’Brien County, Iowa, marking an opportunity for companies specializing in rare-earth metal recycling. Among these is Paladin EnviroTech, a recycling firm led by CEO Brian Diesselhorst that aims to recover valuable rare-earth elements from retired turbines as the U.S. seeks to reduce reliance on China for these critical materials.
Rare-earth metals such as dysprosium and neodymium play a key role in manufacturing magnets used in electric motors for a variety of technologies, including drones and MRI scanners. While Paladin purchases expired electronic devices, its primary focus is on wind turbines, whose large generators often contain substantial amounts of these metals. More recent turbine models can house up to a ton of rare-earth metals, with an estimated value close to $100,000 per unit.
The wind energy sector in the United States faces a growing wave of turbine retirements as earlier models reach the end of their service life. However, not all older turbines contain significant amounts of rare earths; for example, only about 20% of the units replaced at the Highland site are rich in these materials. Still, such recycling efforts offer a potential pathway to diversify U.S. supply chains, which have been constrained by export restrictions and dependencies on China for rare-earth materials.
Efforts to increase domestic production of these minerals have received federal funding, including billions of dollars allocated during the previous administration to support mining ventures. Yet, these initiatives are projected to take years before new sources become fully operational. In the meantime, recovery and recycling from decommissioned turbines present a nearer-term option to supplement the market.
MidAmerican Energy, a Berkshire Hathaway subsidiary, currently operates the largest wind power portfolio among U.S. utilities. At Highland, nearly 1,500 of its 3,700 turbines have been replaced or are slated for replacement. Although metal recyclers have reclaimed scrap from these units, the rare-earth content remained mostly unextracted until companies like Paladin entered the market.
Replacing older turbines with improved models featuring blades approximately 20% longer allows each unit to generate about 15% more electricity. This efficiency gain is particularly valuable amid rising electricity demand and challenges in developing new renewable energy projects. According to Adam Jablonski, vice president of project development at MidAmerican Energy, many of the decommissioned turbines could have continued operating for another decade but are replaced to optimize overall output.
Dismantling turbines poses significant logistical challenges due to the massive size and weight of components. Cranes must remove the blades and nacelles—the housings containing the generators—after which the parts are cut into smaller pieces and transported by heavy trucks. Luke Wray, Paladin’s executive overseeing rare-earth mineral procurement, highlighted the difficulties associated with handling 80,000 to 120,000-pound sections in remote locations, where unstable ground conditions can jeopardize crane operations.
As the U.S. wind industry modernizes its infrastructure, recycling ventures like Paladin’s seek to capitalize on the rare-earth metals embedded in older turbines, contributing to broader efforts to establish more resilient and diversified supply chains for critical minerals.