In advance manufacturing, the Rare Earth Element application has increased with time.  The study has focused on the extraction and recycling method of the critical material by mitigating sustainability challenges.  It investigates the potential of an innovative recycling method called hydrometallurgy and focuses on chemical separation stages. The study refers to multiple stages of acid leaching tests and optimises REE extraction that can also mitigate environmental impact. The recycling of REE can control the waste management of electronic gadgets and manage carbon footprint. The main focus of the study is to recycle critical materials and implement them in advanced manufacturing processes.  It collects multiple data by maintaining a triangular research method. It is the research strategy of the qualitative research method to get hypothetical data by analysing several studies. The researcher gathered theoretical information from Google Scholar, scientific articles, scientific websites, journals, books and ProQuest. In the result section, reviewing the secondary data and decided that the leaching test of hydrometallurgy is the most efficient method to extract REEs. However, this process has some inherent limitations. Besides this it is cost effective and has less environmental impact.  Key words: Rare Earth Elements (REE), Rare Earth Oxide (REO), Recycling, Advanced Manufacturing, Electronic Waste (E-waste), Hydrometallurgy, Acid Leaching, Green Technology, Supply Chain Resilience, Sustainable Production, Separation Techniques, Secondary Resources, Industrial By-products,