BCG: Tackling E-waste can Ease Critical Minerals Shortage
The value of e-waste goes way beyond the monetary worth of materials being thrown away.
With global e-waste expected to double by 2050, the metals and mining industry is standing on the brink of a massive opportunity, says the Boston Consulting Group.
Every day vast quantities of precious metals and minerals are thrown away. The World Economic Forum estimates that just 20% of global e-waste is recycled, while the rest ends up in landfill or is incinerated. The UN says the metals in our discarded electronics alone are worth a staggering $91 billion. So-called 'urban mining' has for some time been mooted as an answer to this problem.
In a LinkedIn post headed ‘The Golden Opportunities Buried in E-Waste’, BCG Associate Director of Non-Ferrous Metals & Recycling, Timm Lux, says that such profligacy “goes beyond the monetary value of materials that are being thrown away”.
He says: “Recycling e-waste could fill a looming supply gap for a number of critical minerals, such as copper – which has a central role in the energy transition. It could also help protect against the risk of supply chain disruptions from geopolitical tensions.
BCG: Local solutions trump shipping e-waste across globe
Lux goes on to say that there are myriad reasons why local solutions are a more sustainable choice than shipping e-waste across the globe for processing.
“For example,” he says, “it can lower the risk of unacceptable labour conditions for the people sorting the waste and cracking open devices.”
He adds that it can also help companies with the traceability of raw materials in products.
“Yet only a fraction of this e-waste is being recycled,” he says, pointing out that among this waste “is a significant amount of ‘critical materials”.
Lux warns that, according to BCG analysis, global e-waste generation is expected to more than double over the next 25 years, reaching 137 million tonnes a year by 2050.
BCG says that the answer to the problem is multi-layered, but that four main things hold the key to cutting e-waste.
- Raise consumer awareness The biggest factor in accelerating the recycling of e-waste, says BCG, is making people aware of how to do it. “Many old laptops or mobile phones are thrown in the trash or stuck at the back of the closet,” says Lux. “There needs to be ongoing education and awareness campaigns, as well as convenient ways to get devices collected.
- Partner for profitability New market-entrants need to “carefully examine the end-to-end process”, says Lux, who adds they also need to identify the key value drivers as well as considering operating costs. This includes: looking at the collection logistics; the quality of the feedstock; and the amount of metal recovered.
“Startups should consider looking for buyers that are interested in the green credentials of metal from e-waste,” Lux stresses. “ Luxury goods firms, for example, may be looking for sustainable and traceable precious metals. Such buyers can also be partners in ensuring an adequate supply of quality feedstock.” - Stay on top of regulation New regulations are helping establish local demand where it didn’t previously exist, say BCG. It adds that this includes the banning of exports of e-waste or limiting what goes to landfill.
It points out that, in the EU, extended producer responsibility (EPR) rules mean that companies are obliged to recycle old devices, and says the Critical Raw Materials Act is also encouraging greater localisation by aiming to reduce dependency on imports of certain minerals.
In the US, meanwhile, clean energy incentives passed in 2022 are “supporting more local recycling infrastructure”. Some US states, it says, have already introduced ERP rules, and others may follow suit, helping drive recycling rates higher. - Harness the ecosystem “This includes electronics companies who may have their own take back scheme, retailers that do similar, waste collection players, and specialist services that help large companies to responsibly dispose of and recycle their outdated equipment” says Lux.
Incorporate circularity in design. In the longer term, companies can choose to design products with circularity in mind. This includes making them easier to repair or reuse. It also means making them easier to recycle—by producing devices in such a way that they are easy to open and so that different materials can be separated.
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