Why is it still so hard to recycle rare earth metals?

Square ChatGPT graphic of green recycling symbol, 1% in black in centre, turquoise wash behind; faded duplicate panels L & R to make landscape. — *Only 1% of REMs are recovered at present (image created using ChatGPT generative AI)*

In this SustMeme Guest Post, Jane Marsh, Editor-in-Chief at Environment.co, explores why recycling of rare earth metals is so underdeveloped at present that we are simply throwing away the future, on a daily basis.

JM: With sustainability on the agenda, there is an existing and expanding requirement for the recycling sector to optimise operations for a rapidly growing vertical: rare earth metals (REMs).

In principle, the market opportunity is clear. Innovations like electric vehicles (EVs) and next-generation semiconductors, which reduce e-waste and adverse environmental impacts, require circular infrastructure.

In practice, however, neither demand nor supply is currently established at anything like commercial scale.

So, what are the issues the industry still faces, and what can it do to keep more REMs in circulation?

Technological hurdles

Recycling rates for REMs are low worldwide, even in regions with advanced sustainability goals, like the EU.

Only 1% of REMs are recovered, despite needing them for renewable energy and electronics. With manual sorting inadequate, most recycling facilities lack the machinery necessary to handle such complex materials.

Plants need hydrometallurgy, pyrometallurgy and other advanced equipment to disassemble and process REMs. So, phased implementation plans are needed to help firms afford these investments over time.

Transition is essential, however, in order to drive clean energy adoption and to advance EV distribution, a these technologies require six times more minerals than internal combustion engines.

Additionally, experts must communicate with policymakers to create incentives and provide assistance to communities, enabling them to adopt these technologies and improve their local environments.

Lack of infrastructure

An absence of essential equipment is a common internal issue that most recyclers face, at present.

However, external resources are also minimal. Not all communities offer municipal recycling for materials such as cardboard or glass, and even fewer have composting options. Instituting specialised kerbside and pickup programmes for REMs would be a monumental task, alongside building-out other recycling streams.

Nevertheless, collecting and sorting infrastructure remains vital for a facility’s success and output rates.

Unhelpfully, many products with REMs are complex and intricate, with multiple parts that are difficult to separate. Some include non-recyclable materials, such as adhesives, too. So, communicating with makers to create modular products designed with disassembly in mind will help reach a broader customer base.

Target markets include renewable energy generators, with portfolios full of valuable assets such as wind turbines and solar panels, which need a consistent source of REMs to maintain stable production.

Without them, fossil fuels like natural gas will continue to be the predominant source of power for the national grid, by default, even though backup power can make intermittent technologies reliable, as well.

Financial viability

When it comes to the business case, it is hard to make the numbers add up. As a result, many companies may resort to mining new materials, as it could be more expensive to find an avenue to recycle them.

In a dynamic marketplace, where urgent demand for REMs is high, investing in the time and resources required for appropriate recycling to be both readily available and consistent is difficult to justify.

Going forward, therefore, companies relying on REMs for their products and services will need to collaborate with governments to make it more economically attractive for businesses to recycle, instead of mining.

In support of such market development, industry experts can also help educate and inform decision-makers, providing them with data about the growth potential of REMs and the benefits of early investment.

The prize is huge. Projected market worth for REM recycling could hit $1.4 billion by 2032, up 25% a year.

What can we do?

In truth, scaling-up is difficult, but doable. Most businesses have yet to establish the infrastructure and economic support to recycle REMs, but the opportunity exists. So, whilst these obstacles may prevent rapid implementation, they also serve as motivation for entrants to get competitive in this emerging market.

In addition, more companies will adopt circularity to enhance stability and mitigate supply chain concerns — making it essential to improve recycling infrastructure for REMs, so as to secure the future of innovation.

Placing individual business actions in their wider content, necessary next steps will also include a review of safer operations to meet federal standards, as well as requirements to demonstrate ecological stewardship.

Portrait of Jane Marsh, smiling leant against white pillar, stood on harlequin tiled red and white floor, wearing white sleeveless silk top and black jeans.

Jane Marsh is the Editor-in-Chief of Environment.co, where she leads the publication’s mission to make sustainability accessible and actionable for readers worldwide. With a background in environmental journalism and communications, Jane has spent her career exploring the intersection of technology, policy, and sustainable living. Jane is passionate about advancing awareness around clean energy transitions, circular economy practices, and the future of green infrastructure. Through her editorial direction, Environment.co continues to highlight the people and technologies driving a more sustainable planet.

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