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Column: US targets scrap to close the critical minerals gap
As global demand for critical minerals rises amid an electrification and green energy shift, policymakers and industries are increasingly focusing on recycling—often termed “urban mining”—as a solution to the challenges posed by dwindling domestic mining capabilities and environmental concerns. The U.S. Department of Defense (DOD) is driving this effort, having recently allocated $19 million to Nathan Trotter & Co., a secondary tin producer, to bolster domestic recycling capabilities. This investment highlights a growing recognition of urban mining’s essential role in achieving mineral self-sufficiency.
Urban mining is not just a defensive strategy; it represents a significant opportunity to reduce reliance on primary resource extraction. As the DOD and Department of Energy (DOE) funnel funds into various recycling initiatives—from titanium alloy recovery to the promising development of electric vehicle (EV) battery recycling—the landscape of America’s metal industry is changing. With the potential to significantly lower greenhouse gas emissions and energy consumption, urban mining presents a greener alternative that could reshape America’s mineral supply chain.
### Urban Mining: A Necessity for National Security
The urban mining narrative highlights the urgency of scaling up recycling operations. The DOD’s investments extend to companies like 6K Additive and Rare Earth Salts, focusing not only on metals like titanium but also on critical elements such as terbium. The DOE is making strides in enhancing recycling techniques, pledging $22 million to upgrade Golden Aluminum’s operations and exploring copper recycling capabilities at Wieland’s Shelbyville facility. This prioritization underscores urban mining as an efficient way to address the critical minerals shortage while minimizing environmental impacts.
Recycling presents an additional layer of sustainability. For instance, the energy savings associated with recycled aluminum can be as high as 90%, and the carbon emissions can drop by 80% compared to primary production methods, according to the International Energy Agency. Beyond the environmental advantages, quickening recycling processes means a more streamlined operation compared to the lengthy permitting process for new mines, a crucial factor for U.S. supply-chain resilience.
### Unlocking Untapped Recycling Potential
The global trend in metals recycling shows a mixed picture. The International Energy Agency (IEA) indicates that while the share of recycled copper in global demand has declined from 37% in 2015 to 33% in 2023, aluminum recycling has bucked this trend, rising from 32% to 35%. Alarmingly, the U.S. falls behind the global recycling curve, with secondary copper accounting for just 30% of national consumption. The country has become the largest exporter of copper and aluminum scrap, primarily sending it to countries like China, rather than capitalizing on the domestic supply.
The U.S. recycling landscape is hampered by insufficient processing capabilities and a lack of efficient collection systems. For example, the recycling rate for aluminum cans, a seemingly simple product to recycle, is below 50%. This equates to the waste of approximately $800 million worth of resources annually—enough to fund the establishment of a new primary smelter.
### The Emerging Challenges of EV Battery Recycling
Among the most pressing challenges in urban mining is the recycling of EV batteries, which presents a unique set of economic and technical hurdles. As the market shifts towards lithium-iron-phosphate (LFP) batteries, which account for 40% of global sales, the economic feasibility of recycling diminishes. Since LFP batteries contain less valuable metals like nickel and cobalt, this market may need to explore alternative business models, such as toll-based recycling.
The global regulatory landscape for recycling spent EV batteries is still developing, leading to inconsistencies in waste management across regions. Moreover, China currently leads in processing recycled battery materials, posing potential risks for the U.S. as it looks to secure its domestic supply chain.
### Learning from Lead-Acid Battery Success
To address these hurdles, the IEA emphasizes the importance of a cohesive policy framework at both national and international levels. The lead-acid battery recycling model serves as a successful template, with rates nearing 99% in developed countries. This high recycling rate minimizes the need for new mines and supports the argument that investing in recycling infrastructure is a more sustainable and cost-effective strategy than pursuing additional mining operations.
The lessons learned from the lead-acid battery market highlight an essential truth: by enhancing domestic scrap processing capabilities, the U.S. can not only improve its recycling rates but also fortify its supply chain against external shocks. The future lies in recognizing that critical metals are already within reach, encapsulated in the products we use daily, waiting to be repurposed.
By recalibrating focus towards urban mining and recognizing the untapped potential of the recycling sector, the U.S. can build a more resilient, efficient, and environmentally friendly approach to meet its mineral demands. This strategic shift promises a pathway not just to sustainability but also to greater national security and economic stability in an increasingly interdependent global landscape.
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