Rare earths conflict with China giving new life to old PCs, phones

As the U.S. and China vie for economic, technological and geopolitical supremacy, the critical elements and metals embedded in technology from consumer to industrial and military markets have become a pawn in the wider conflict. That’s nowhere more so the case than in China’s leverage over the rare earth metals supply chain. This past week, the Department of Defense took a large equity stake in MP Materials, the company running the only rare earths mining operation in the U.S.

But there’s another option to combat the rare earths shortage that goes back to an older idea: recycling. The business has come a long way from collecting cans, bottles, plastic, newspaper and other consumer disposables, otherwise destined for landfills, to recreate all sorts of new products.

Today, next-generation recyclers — a mix of legacy companies and startups — are innovating ways to gather and process the ever-growing mountains of electronic waste, or e-waste, which comprises end-of-life and discarded computers, smartphones, servers, TVs, appliances, medical devices, and other electronics and IT equipment. And they are doing so in a way that is aligned to the newest critical technologies in society. Most recently, spent EV batteries, wind turbines and solar panels are fostering a burgeoning recycling niche.

The e-waste recycling opportunity isn’t limited to rare earth elements. Any electronics that can’t be wholly refurbished and resold, or cannibalized for replacement parts needed to keep existing electronics up and running, can berecycled to strip out gold, silver, copper, nickel, steel, aluminum, lithium, cobalt and other metals vital to manufacturers in various industries. But increasingly, recyclers are extracting rare-earth elements, such as neodymium, praseodymium, terbium and dysprosium, which are critical in making everything from fighter jets to power tools.

“Recycling [of e-waste] hasn’t been taken too seriously until recently” as a meaningful source of supply, said Kunal Sinha, global head of recycling at Swiss-based Glencore, a major miner, producer and marketer of metals and minerals — and, to a much lesser but growing degree, an e-waste recycler. “A lot of people are still sleeping at the wheel and don’t realize how big this can be,” Sinha said. 

Traditionally, U.S. manufacturers purchase essential metals and rare earths from domestic and foreign producers — an inordinate number based in China — that fabricate mined raw materials, or through commodities traders. But with those supply chains now disrupted by unpredictable tariffs, trade policies and geopolitics, the market for recycled e-waste is gaining importance as a way to feed the insatiable electrification of everything.

“The United States imports a lot of electronics, and all of that is coming with gold and aluminum and steel,” said John Mitchell, president and CEO of the Global Electronics Association, an industry trade group. “So there’s a great opportunity to actually have the tariffs be an impetus for greater recycling in this country for goods that we don’t have, but are buying from other countries.”

With copper, other metals, ‘recycling is going to play huge role’

Although recycling contributes only around $200 million to Glencore’s total EBITDA of nearly $14 billion, the strategic attention and time the business gets from leadership “is much more than that percentage,” Sinha said. “We believe that a lot of mining is necessary to get to all the copper, gold and other metals that are needed, but we also recognize that recycling is going to play a huge role,” he said.

Glencore has operated a huge copper smelter in Quebec, Canada, for almost  20 years on a site that’s nearly 100-years-old. The facility processes mostly mined copper concentrates, though 15% of its feedstock is recyclable materials, such as e-waste that Glencore’s global network of 100-plus suppliers collect and sort. The smelter pioneered the process for recovering copper and precious metals from e-waste in the mid 1980s, making it one of the first and largest of its type in the world. The smelted copper is refined into fresh slabs that are sold to manufacturers and traders. The same facility also produces refined gold, silver, platinum and palladium recovered from recycling feeds. 

The importance of copper to OEMs’ supply chains was magnified in early July, when prices hit an all-time high after President Trump said he would impose a 50% tariff on imports of the metal. The U.S. imports just under half of its copper, and the tariff hike — like other new Trump trade policies — is intended to boost domestic production.