The rare-earth elements (REEs) are a group of 17 chemically similar metallic elements; this group consists of scandium, yttrium, and 15 lanthanides. Due to their essential role in permanent magnets, lamp phosphors, catalysts, and rechargeable batteries, the REEs have become an essential component of the global transition to a green economy. Currently, with China producing over 90 % of the global REE output and its increasingly tightening export quota, the rest of the world is confronted with the potential risk of REE shortage. As such, many countries will have to rely on recycling REEs from pre-consumer scrap, industrial residues, and REE-containing end-of-life products. Over the course of the last two decades, ionic liquids have been increasingly used to separate REEs in the recycling process. Ionic liquids (ILs) are a class of molten salts that are liquid at temperatures below 100 C. ILs are amenable to the recycling of REEs because the cation and anion components are readily tailored to a given process, and they offer numerous advantages over typical organic solvents, such as low volatility, low flammability, a broad temperature range of stability, the ability to dissolve both inorganic and organic compounds, high conductivity, and wide electrochemical windows. In this chapter, we discuss the performance of several IL-based extraction systems used to separate and recycle REEs.