A new report from the International Energy Agency (IEA) outlines how ramping up the recycling of critical minerals could play a key role in the global energy transition, reducing the need for new mining and easing supply chain pressures. The report, “Recycling of Critical Minerals: Strategies to Scale Up Recycling and Urban Mining”, suggests that increasing recycling could cut the demand for new copper mining by up to 40% by 2050, while reducing the need for new lithium and cobalt mining by 25%.
The IEA’s findings highlight the growing need for critical minerals such as copper, lithium, and cobalt, which are essential for clean energy technologies like electric vehicles, solar panels, and wind turbines. To meet global energy transition targets, the IEA estimates that $600 billion in mining investment will be required by 2040. However, the report emphasizes that without a significant expansion in recycling, this investment figure could be 30% higher, putting more strain on resources and contributing to environmental degradation.
Recycling critical minerals offers substantial environmental benefits. Recycled minerals typically have an 80% lower carbon footprint compared to primary materials, as they require far less energy and fewer resources to process. Moreover, recycling helps reduce waste and divert materials from landfills, contributing to a more circular economy.
A key solution for supply chain security
In addition to environmental and financial benefits, the IEA stresses that recycling can play a crucial role in improving supply chain security. As demand for critical minerals surges, countries and companies are seeking ways to secure their supply chains. By increasing recycling rates, nations can reduce dependence on mining and bolster their resilience to disruptions in global mineral markets.
“Recycling is vital to tackling the challenges around critical mineral supplies and ensuring long-term sustainability,” said Fatih Birol, Executive Director of the IEA. “While investment in new mines and refineries remains crucial, there is ample opportunity for recycling to maximize the resources already at our disposal. As we move into the Age of Electricity, we must take advantage of the treasure trove of worn batteries and electrical devices that could be revived and reused. To do so, however, we must develop a mature marketplace for recycling that makes it attractive and easily accessible.”
The rise of battery recycling
The IEA’s report also highlights the rapid expansion of battery recycling, noting that capacity in this area grew by 50% in 2023. China continues to dominate the global market for pre-treatment and material recovery, with expectations that the country will maintain more than 70% market share in both areas through 2030. China has already established a strong position in critical minerals refining and recently launched a state-owned enterprise focused on recycling and reusing end-of-life batteries and other materials.
While this growth in recycling capacity is seen as essential to meeting future demand, the IEA also warns that it brings potential environmental risks. The complexity of battery recycling—due to the diverse range of materials involved—can lead to pollution, water contamination, and other environmental issues if not managed properly. To address these risks, the IEA stresses the need for stronger recycling standards and calls for more robust policies to ensure that recycling processes are both efficient and environmentally responsible.
Key actions for policymakers
The IEA’s report outlines a series of key actions for policymakers to help scale up critical mineral recycling. These include establishing clear regulatory frameworks, incentivizing investment in recycling infrastructure, and promoting research and development to improve recycling technologies. The agency also urges governments to create a “mature marketplace” for recycled materials, making it easier for companies to access and utilize recycled minerals.
As global demand for critical minerals continues to rise, the IEA argues that increasing recycling will be an essential component of a sustainable and secure energy transition. By fostering a circular economy for these vital materials, the world can reduce its dependence on new mining, minimize environmental impacts, and build a more resilient supply chain for the future.
Conclusion
The IEA’s report reinforces the growing importance of recycling as a key solution to the challenges of meeting energy transition goals. While investment in new mining will still be necessary, scaling up recycling could significantly reduce the environmental and financial costs associated with the energy transition. By improving recycling technologies and establishing more robust supply chains, countries can help meet the growing demand for critical minerals while ensuring a cleaner, more sustainable future.
