MATERIALS HANDLING
ALTERNATIVES TO MINING Opportunities to boost secondary copper supply are rising
A new IEA report fi nds that the successful scale up of global recycling will signifi cantly lower the need for new mining activity
A
s the shift to a clean energy accelerates, substantial investments in new mines and refi ning
capacity, especially in geographically diverse regions, will be required to produce essential minerals such as copper, lithium, nickel, cobalt and rare earths. However, recycling will also be indispensable to the security and sustainability of critical mineral supply for clean energy transitions. With this in mind, a new IEA
report fi nds that a successful scale- up of global recycling will lower the need for new mining activity on the world stage by 25-40%. More broadly, it looks at the importance of unlocking the potential of recycling by evaluating the current status of recycling of minerals critical to the energy transition, analysing the prospects for secondary supply, and outlining targeted policy recommendations.
RECYCLING FAILS TO KEEP PACE Despite growing policy ambitions, the use of recycled materials has so far failed to keep pace with rising material consumption. In the case of copper, which plays a central role in all electrical applications, the share of secondary supply (including direct scrap) fell from 37% in 2015
38
www.engineerlive.com
to 33% in 2023. Similarly, the share of recycled nickel decreased from 33% to 26% over the same period. The main exception is aluminium, which benefi ts from well-established waste management programmes and supportive regulations, where the recycled share increased modestly from 32% to 35%.
POLICY MOMENTUM Despite this, policy momentum is gaining strength, with a surge in new policies and regulations. According to the IEA’s Critical Minerals Policy Tracker, more than 30 new policy measures related to critical mineral recycling have been introduced since 2022. These policies generally fall into four categories: strategic plans, extended producer responsibility (EPR), fi nancial incentives and cross-border trade regulations. Some also include regulatory mandates such as industry specifi c targets for material recovery, collection rates and minimum recycled content. However, most strategies are not yet comprehensive. Among the 22 countries and regions surveyed, only three had a broad framework that included clear targets, implementation mechanisms, monitoring systems and economic incentives. As stated, a successful scale-up of recycling would lower the need for new
mining activity by 25-40% by 2050 in a scenario that meets national climate pledges. While accelerated clean energy deployment calls for a substantial expansion of new mines and refi neries to meet material demand, it also creates an opportunity for secondary supply to play an increasingly valuable role. In the Announced Pledges Scenario (APS), which refl ects national climate pledges, recycling will likely reduce new mine development by 40% for copper and cobalt, and close to 25% for lithium and nickel by 2050. The market value of recycled energy transition minerals is also predicted to grow fi ve fold by that time reaching US$200bn. As a result, requirements for primary materials are likely to begin to decline by this time. Nonetheless, investments in new
mines will continue to be essential as supply levels required by mid- century will still be higher than today and existing mines will experience natural declines in output. Enhancing critical minerals recycling will off er substantial fi nancial and sustainability benefi ts. In the APS, some US$600bn of mining investments will be required through 2040, while achieving net-zero emissions by 2050 will cost around US$800bn. Without an increase in recycling, these costs would both be 30% higher, increasing the burden of mobilising the necessary fi nancing. Recycling will also mitigate
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
