Critical Raw Materials Recycling: Key European Players and Capabilites

The recycling of Critical Raw Materials (CRMs) plays a crucial role in Europe's transition towards a circular economy. The EU's 2023 list identifies 34 essential raw materials vital for high-tech and green technologies, highlighting their importance in the region's industrial and environmental landscape. CRM recycling helps the EU reduce supply risks and meet its environmental goals. The industry is driven by both established companies and innovative startups, working to advance recycling efforts across Europe.

Research performed by iimpcoll reviewed that Germany leads in CRM recycling capacity, followed by Belgium and the Netherlands, with Northern and Central Europe serving as current hubs. The field is marked by innovative technologies, including advanced processes like hydrometallurgy, bioleaching, and AI-driven sorting, which are enhancing recycling efficiency. While policies like the European Green Deal support growth in this sector, challenges remain in collection, sorting, and ensuring economic viability. Efficient CRM recycling is crucial not only for a circular economy but also for Europe's industrial competitiveness and technological advancement.

Why is the recycling of critical raw materials important in Europe?

Critical raw materials (CRMs) are essential for the production of a wide range of high-tech devices, renewable energy technologies, and strategic industrial applications. In Europe, the efforts towards a circular economy have amplified the need to efficiently recycle these materials to ensure a sustainable supply chain, reduce dependency on non-EU sources, and minimize environmental impacts from the linear flow of resources. The European Union's latest list of CRMs of 2023 identifies 34 essential raw materials vital for the continent's economic and technological landscape.

Curiosity: Three of the CRM consist of multiple materials grouped, but they are each counted as a single one in the list. They are Light Rare Earth Elements (LREEs), Heavy Rare Earth Elements (HREEs), and Platinum Group Metals (PGMs), composed of five, nine, and five raw materials, respectively.

These materials play a crucial role in the production of electric vehicles, renewable energy infrastructure, and various high-tech applications, making their availability and recycling a priority for the EU. Ensuring a consistent and sustainable supply of these CRMs is imperative for maintaining Europe's industrial competitiveness and supporting its ambitious environmental targets.

Recycling is a critical part of raw materials circularity as it mitigates the risks associated with supply, such as price volatility, availability, and import dependency. As indicated by the CRM 2023 list and their factsheets, 15 CRMs have an importing reliance of 100%, i.e., they are completely sourced from countries outside the EU. As for today, the recycling rates of CRMs are still low or virtually zero, as in the case of LREEs and HREEs.

Recycling contributes to resource efficiency and supports the EU's environmental goals by reducing waste and lowering greenhouse gas emissions (GHG). Increased secondary metal production could result in GHG savings of up to 40 Gt by 2050 (Miranda et al, 2022). The results from the study indicate that even small increments of improved metal recovery for secondary production have significant potential for GHG emission reductions. As these materials are often scarce and difficult to extract, their recycling becomes a cornerstone for the region's industrial resilience and economic stability.

Who are the recyclers of critical raw materials in Europe?

Europe is home to several companies specializing in the recycling of CRMs. Some major players are at the forefront of scaling technology on an economically feasible level. Companies like Umicore, Glencore, and Boliden AB are known for their advanced recycling processes and capacity. Other players, such as startups, are characterized by their high technological innovation for handling CRM from hard-to-recycle sources and/or at low concentrations. Startups like Torezo, Monolithos, and Primobius have gained attention due to their promising technologies. In the efforts to maximize CRM recycling to the highest level, there is space for all sorts of players in the market.

Recycling companies apply specific techniques to recover valuable metals from electronic waste, batteries, and other industrial by-products. For instance,  according to the International Energy Agency, a typical lithium-ion EV battery pack on average contains about 8 kg of lithium, 14 kilograms of cobalt, and 20 kilograms of manganese.

What are the capacities for recycling critical raw materials in European countries?

iimpcoll has conducted independent research to map the CRM recycling actors distributed across several European countries, including Belgium, Estonia, Finland, Denmark, Germany, Lithuania, Latvia, Netherlands, Norway, Poland, and Sweden. From the 2023 list, only 20 CRM were selected in the study (with HREE, LREE, and PGM accounting for 1 each). Our study revealed the CRM recycling capacity and capabilities of each country, information that is valuable to drive policies and decisions toward the circularity of CRM.

The distribution of CRM recyclers across Europe varies significantly by region, reflecting local industrial strengths and resource availability. Northern and Central Europe, particularly countries like Germany, Belgium, and Sweden, are leading hubs for CRM recycling due to their robust industrial bases and strong environmental policies. The regional distribution of major CRM recyclers in the European Union shows that Germany leads with 31 recyclers, followed by Belgium and Sweden, each with seven recyclers. The Netherlands has six, while Norway has five. This data highlights Germany's significant presence in the recycling sector within the EU.

In Southern and Eastern Europe, including the Baltic countries, the recycling infrastructure is developing rapidly, with countries like Estonia, Italy, Spain, and Poland making significant strides. These regions are increasingly attracting investments and fostering collaborations to enhance their recycling capabilities and integrate more effectively into the European circular economy framework.

Germany is at the forefront of CRM recycling from the 2023 list. It covers a total of 20 raw materials. It is then followed by Belgium, which recycles 16 elements, and the Netherlands with 13. In Germany, the recycling focus is primarily on battery materials such as cobalt, nickel, and lithium, along with elements like copper and aluminium.

Number of CRM with recycling capacity across selected countries

Belgium primarily focuses on recycling battery materials, including copper, cobalt, nickel, and lithium, while also handling rare elements such as germanium. This emphasis on both common and rare materials showcases Germany and Belgium's commitment to enhancing their recycling capabilities in the critical raw materials sector.

What are the innovative technologies for recycling critical raw materials?

Innovation is at the heart of CRM recycling, with numerous breakthroughs transforming how materials are recovered and reused. Advanced hydrometallurgical and pyrometallurgical processes, for instance, are improving the efficiency and purity of recycled materials. Hydrometallurgical processes, e.g., leaching, ion exchange, and solvent extraction, are becoming preferred due to their lower working temperatures than pyrometallurgy. Techniques such as bioleaching, which uses microorganisms to extract metals, are also gaining traction.

Additionally, digital technologies like AI, sensors, and blockchain are being integrated into recycling operations to optimize sorting, track material flows, and ensure transparency throughout the supply chain. These innovations not only enhance the effectiveness of recycling but also reduce costs.

What are the trends and Challenges in critical raw materials recycling?

The future of CRM recycling in Europe looks promising, driven by regulatory support, technological advancements, and growing industry commitment to sustainability. Policies under the European Green Deal, such as the Critical Raw Materials Act, are set to accelerate the transition towards a circular economy further, creating new opportunities for the recycling market.

However, challenges remain, including the need for more efficient collection and sorting systems, the complexity of recycling certain high-tech materials, and the economic viability of recycling operations. Addressing these issues will require continued innovation, investment, and collaboration across the value chain to ensure that CRM recycling can meet future demands sustainably and effectively.

Curious to know more about your CRM recycling potential? Contact our team, we are ready to support you in this endeavor.