Recycling to avoid a future 'battleground'

Events of the last few years have clearly demonstrated to us that global supply chains are an interconnected web and events in one part of the world can have a knock effect that go far beyond its borders.

These inter-connections make controlling the availability of raw materials a strategic advantage for a country, which could be leveraged or, as some commentators are saying, weaponized.

The European Union maintains a list of 30 raw materials which are critical to the economic development of the region but whose supply is considered at risk. The first list developed in 2011 only contained 14 materials, this may give a sense that the scope of the risks is broadening.

"a typical smartphone may contain up to 50 different types of metals, many of which have supply risks associated with them, it is easy to see how impactful a shortage would be."

The nature of the perceived risks are are either an absolute limitation in the availability of the raw material or the fact that the material is sourced from a country with challenging relationships or even countries with no effective government. We have all probably heard of conflict diamonds but similar issues play out with a wide range of raw materials upon which we are dependent.

If you consider that a typical smartphone may contain up to 50 different types of metals, many of which have supply risks associated with them, it is easy to see how impactful a shortage would be. Similar issues play out across many hi-tech industries, from medical machinery through to satellite and space technology. A country that can control availability of a raw material is strategically well positioned to dictate terms. Chinese media reported May 28 2022 that China's state planning agency had made a thinly veiled threat of using rare earths as a trade weapon against the U.S., which had recently blacklisted Chinese telecommunications firm Huawei Technologies Co. Ltd., citing perceived threats to U.S. national security or foreign policy interests. None of this bodes well for future economic development.

Linking this to climate change is very easy to do, The green revolution is exposed to these supply chain risks, with clean technologies such as electric vehicle batteries, wind turbines and energy efficient efficient lighting all requiring one or more of these defined critical raw materials..

How can recycling help?

One of the obvious steps in mitigating supply risks is to ensure that materials that are circulation today remain available for reuse for as long as possible. The development of in-country recycling facilities results in a quantity of these critical raw be controlled locally, lessoning the dependence on the primary sources of supply. However data suggests we have a long way to go before we maximize the value that recycling can contribute. EU figures for mobile phone recycling (including both recycling and reselling) suggest only 41% of mobile phones remain in the value loop, with many being abandoned in drawers at home or sent to landfill. The figure for the US falls to a mere 20%. If we are to effectively mitigate supply chain risks we need to broaden the perceived value of recycling beyond simply doing what is right for the planet to it also being strategically important for our future economic prosperity.