Rare Earth Metals Supply Chain Conflict

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In rare earth metals power struggle with China, old laptops, phones may get a new life
CNBCยท 2025-07-13 14:55
Core Insights - The U.S. and China are competing for dominance in the rare earth metals supply chain, with China currently controlling approximately 90% of the global market [21][22] - The U.S. Department of Defense has taken a significant equity stake in MP Materials, the only rare earths mining operation in the U.S., highlighting the strategic importance of domestic rare earth production [1][23] Industry Overview - The e-waste recycling industry is evolving, with next-generation recyclers focusing on processing electronic waste to recover valuable metals, including rare earth elements [3][4] - In 2022, global e-waste production reached a record 62 million metric tons, an increase of 82% since 2010, and is projected to rise to 82 million metric tons by 2030 [14] - The U.S. generated nearly 8 million tons of e-waste in 2022, with only 15-20% being properly recycled, indicating a significant untapped market [15] Market Dynamics - The demand for recycled metals is increasing due to disruptions in traditional supply chains caused by tariffs and geopolitical tensions, making recycling a more attractive option for manufacturers [6][7] - The e-waste recycling industry generated $28.1 billion in revenue in 2024, with a projected compound annual growth rate of 8% [15] Technological Innovations - Startups like Illumynt and Cyclic Materials are developing advanced processes to recover rare earths and other metals from e-waste, including decommissioned hard drives and end-of-life lithium-ion batteries [25][26][27] - The recycling of spent EV batteries is becoming a critical niche, as these batteries contain essential materials for new battery production [27] Investment Trends - Foreign companies are investing in U.S.-based recycling facilities, with notable projects including a $100 million copper recycling plant by Wieland and an $800 million multi-metal recycling facility by Aurubis [11][12] - Despite the potential for growth, industry experts caution against over-reliance on tax credits for the sustainability of recycling businesses [29]