Scaling up critical minerals recycling holds immense benefit

Benjamin Orisemeke

The International energy Agency (IEA), has said that scaling up critical minerals recycling can deliver major benefits for energy security, diversification and emissions reductions.

According to the IEA, the surge in new policies and facilities to support the recycling of critical minerals, the essential raw materials that go into clean energy technologies could significantly reduce potential strains on supply as countries pursue energy transitions.

The report, Recycling of Critical Minerals: Strategies to scale up recycling and urban mining revealed that the growth in new mining supply for critical minerals could be brought down by between 25-40 per cent by mid-century by scaling up recycling.

“In a scenario in which countries around the world deliver on all the announced national climate pledges, recycling reduces new mine development needs by 40% for copper and cobalt, and by 25% for lithium and nickel by 2050, the report finds. These metals are the lifeblood of the rapidly expanding clean energy technologies available today including solar, wind, electric vehicles and batteries among others.

“Investments in new mines remain essential as supply levels required by mid-century are much higher than today’s production and existing mines face natural declines in output. Based on announced climate pledges, around $600 billion of mining investment is required through 2040, but this amount would be 30% higher without the uptake of recycling,” the report stated.

The energy body noted that despite growing policy ambitions, the use of recycled materials has so far failed to keep pace with rising material consumption, with the share of secondary copper and nickel declining.

The report shows a vast potential for expanding recycling worldwide, if the right policy incentives are in place, as EVs reach end-of-life and feedstock availability increases rapidly after 2030, adding that the market for recycled battery metals is already growing fast with an 11-fold increase in less than a decade, albeit from a relatively low base.

“Policy interest in this area is picking up. In the last three years, according to the IEA’s Critical Minerals Tracker, more than 30 new policy measures on recycling have been introduced. And if all existing and announced policies are realised, the market value of critical minerals recycling could reach $200 billion by 2050.

“Expanding recycling can have positive knock-on effects for energy security by reducing reliance on imports and building up reserves to mitigate against future supply shocks and price volatility. The security benefits can be greater in regions with limited mineral resources and substantial clean energy deployment. Moreover, it reduces the environmental and social impact. On average, recycled critical minerals incur 80% less greenhouse gas emissions than primary materials from mining and help prevent waste of end-use technologies ending up in landfill,” it added.

Commenting on the report, IEA’s Executive Director Fatih Birol said “Recycling is vital to tackling the challenges around critical mineral supplies and ensuring long term sustainability.

“Investment in new mines and refineries remains crucial but there is ample opportunity for recycling to maximise the resources already at our disposal. As we move into the Age of Electricity, we have to take advantage of this treasure trove of worn batteries and electrical devices that could be revived and reused, but to do so we must develop a mature marketplace for recycling to make it attractive and easily accessible.”

The report also highlights that battery recycling capacity is expanding rapidly, with 50% year-on-year growth in 2023.

“Recycling capacity is currently outpacing available feedstock, but that picture could change dramatically after 2030 as more clean energy technology installations and electric vehicles reach end-of-life. There are major regional differences,” IEA stated.