IEA calls for greater support for critical minerals recycling

A wave of new policies and mechanisms designed to support the recycling of critical minerals could deliver significant benefits for energy security, diversification, and emissions reductions, the International Energy Agency states in a new report released Nov. 18.

In the report, Recycling of Critical Minerals: strategies to scale up recycling and urban mining, the IEA projects that growth in critical minerals mining supply could be reduced by between 25-40% by 2050 through an expanded recycling effort.

Under a scenario where countries deliver on their net zero climate pledges, the IEA estimates that recycling could reduce new mining capacity needs by 40% for copper and cobalt, and by 25% for lithium and nickel by 2050.

While the use of recycled materials has so far failed to keep pace with rising material consumption, the IEA suggests that there is "vast potential" for critical minerals recycling as electric vehicles reach their end-of-life the availability of discarded batteries increases significantly post-2030.

"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 report states.

On average, recycled critical minerals incur 80% less greenhouse gas emissions than primary materials and help reduce landfill waste, it said.

According to the IEA, the market for recycled battery metals is expanding significantly having increased with 50% year on year growth estimated in 2023.

As the IEA notes, China accounts for the majority of global pretreatment and material recovery and is expected to retain a 70% share across both areas heading towards 2030.

The report states that Chinese recycling capacity remains higher than available domestic feedstock while in Europe and the US announced recycling capacity covers only 30% of feedstock by 2040.

Critical minerals recycling has also attracted the interest of policymakers with 30 new policy measures on recycling being introduced in recent years, according to the IEA's critical minerals policy tracker. These policies include financial incentives and industry specific targets for material recovery, collection rates and minimum recycled content, the report says.

The IEA states that many of these strategies are not comprehensive and need to be expanded to other sectors.

"Greater clarity on policies and regulations is also essential to support the uptake of battery recycling with the absence of clear, long-term regulations including export rules for used batteries and EVs creating barriers to investment," it said.

IEA Executive Director Fatih Birol described recycling as vital to tackling the challenges around critical mineral supplies.

"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," he added.