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A just-released report by the US Department of Energy (DOE) reinforces what many in the electronics industry already know: The global supply of rare-earth elements (REEs) largely depends on how China decides to manage the materials, because the most viable sources of REEs lie within China's borders. (See: The Truth About Rare Earths, Part 2 and The Truth About Rare Earths, Part 1.)
The DOE report examines alternative sources of REEs, including recycling, and concludes that the REE-reclamation market currently is vastly underserved.
REEs are not often recycled, reports the DOE, because they are used in small quantities in many technologies, both on a total and a per-unit basis. Additionally, per-kilogram market prices are generally low relative to precious metals, so recycling is often not cost effective.
However, as the use of these materials increases in vehicles and other common technologies, recycling could make more economic sense. Recycled content could become valuable as a secondary source on the market, which can ease periods of tight supply. Relevant research includes the following:
- Technology, component, and material design for disassembly and recycling
- Collection, logistics, and reverse supply chain optimization
- Recycling process development
- Recycling and reconditioning rare-earth materials from spent fluorescent lamps (with particular attention to safe and economical disposal of mercury)
- Recycling and reconditioning rare-earth materials from manufacturing yield loss
- Methods for efficient demagnetization of rotating-machine components
- Metallic flux processes for recovering REEs
Electronics manufacturing has at some point tackled all of these functions — design, supply chain optimization, manufacturing yield, and flux processes — and has improved on them. Moving core competencies into adjacent markets is a key strategy for organic growth. It's extremely likely the electronics manufacturing industry has developed technology that can be applied to REE recycling.
Additionally, according to the DOE, the sector has opportunity for job growth.
“As the domestic industry in rare earth metals and other critical materials grows, a trained workforce will be increasingly important,” according to the DOE. “Today, employment opportunities in these areas are limited, in part because of the small size of the sector. Yet the sector is less likely to grow without trained workers…
“Investment in education and training, alongside investment in productive capacity, can help support the country’s manufacturing base. Cooperation among government, industry and research institutions can be important drivers of clean energy innovation.”
Of course, any nascent market holds the same growth opportunities. But if the US wants manufacturing to return to its shores, clean energy appeals to both business and public sensibilities. The US could also gain a degree of independence regarding REE sourcing. Any thoughts?
China has been steadily tightening their worldwide export quotas of REE, and periodically blocks shipments altogether to Japan. Japan has already been active in recycling REE as well as stockpiling REE due to the uncertainty of China’s restrictions on exports to Japan. Japan even recycles REE from used products from the US and the country is aggressively researching alternatives to REE for their products. Perhaps the US will follow Japan’s lead on this.
Specially rare earth metals like neodymium is very useful in many green technology products, including batteries for hybrid cars, LED lights, fuel cell and solar panels. Boosting recycling rates not only offers a path to enhancing those supplies and keeping metal prices down, but can also generate new kinds of employment while ensuring the longevity of mines and stocks found in nature.
Japan has materials science and technology programs that are well-established. I could see them coming up with a game-changing technology.
China's unfriendly trade practices may be a little short-sighted. It was Japan that was largely responsible for putting the term “rust-belt” into the American lexicon.
RFID tags seems to have gone out of discussion nowadays. In the supply chain context RFID tags assume a significant importance. I am interested to know what is the status of the usage of this technology in the developed countries like USA, Europian countries. Is this technology poised to replace those bar codes universally? So far as my experience in India is concerned I have yet to see a RFID enabled warehouse.
Not too sure about the rest of the world, but RFID id is big in Hong Kong , staff ID cards product identification etc.
You can pick up a 13.56MHZ rfid reader/writer in China for about 15$us the 125khz readeres/writers are even cheaper.
So really it is not the technology of readrers/writers holding things up, I guess it needs to hit a break over point , the manufacturers don't want to add cost to the product and complicate their current supply chain with the equipment needed, and the resellers etc don't want to buy the equipment because RFID is not fully implemented yet.
Once it hits a break over point there will be a massive rush to get the technology fully implemented, It reminds me of the Security stickers to prevent shoplifting, that seemed to go through the same curve, now some big retailers insist that all products supplied above a certain market value come pre processed from the suppliers with the correct tags for thier RF security systems.
Used to be the Retailers did the attaching of the tags
Thanks Hardcore for providing this information. Regarding the pricing you have mentionsed that a reader/writer set cost around US$ 15. Can you tell me what is the cost of the tag itself. If the tag cost is minimal then a warehouse can easily afford to implemnt a RFID based inventory tracking system.
It is surprising that the Western countries have not figured out how to re-cycle these rare earth metals, inlight of the fact that 97 percent of the world's supply comes from mines in China.
Historically, China will not recycle any material so we should not expect them to recycle this one. Mike Adams, editor of Naturalnews.com just wrote that China is prepared to simply stop exporting these strategic elements to the rest of the world by 2012, because it would need it for its own development. So the opportunity for recycling is definitely wide open and in fact necessary now if the electronic supply chain is to continue.
So here we go again, China calling the shots and we are all helpless!!
Do you know if the US has started any recycling like the Japanese? I know that 85% of the lead used in the States is from its recyling of old lead acid batteries.
Praseodymium used for lasers and ceramic materials and Gadolinium used for the manufacture of computer memories can be salvaged from the tons of computer at our dump sites instead of its being shipped to third world countries!
Yes, I agree that it would be good to have more of this type of recycling here in the 'west'. However I think the problem is the cost of doing so, and not having high margins on selling the recycled material. Finding ways to recycle these materials cheaply and safely could go a long way.
Hi,
The cost of the tag varies on the enclosing medium and the functionality, IE the embedded memory of the tag. Prices are still being quoted over 50 cents for volume.
But I'm having a hard time believing some of the costs associated with the tags, there seems to be some significant resistance to price decrease (which is only natural, since no one is going to get rich if the cost is a few cents for each tag)
The key is going to be the China market, I'm starting to see embedded tags appearing on more 'high value' products. Used to be they would pay staff to follow you around, but that is very much reduced now in stores where tags are being used.
Currently they seem to be attaching 'reusable' tags onto product over 40RMB, more for security than for actual data collection, it just seems an 'odd' way to implement security, unless it is a combined tag with an RF security antenna AND an RFID tag, in some cases it appear the 'market' for tags is not smart enough yet to decide on the equipment they are installing and for what purpose.
Once they get the 'issues' related to why they are installing the equipment sorted out and the supply chain requirements start to cut in (its only a few years ago that KFC & Mc Donald's started using 'real' trucks to deliver materials in smaller towns and cities) and seeing refrigerated trucks in China is still a rarity, its even rarer to see the refrigeration plants turned on instead of blocks of ice inside. (and i STILL see MC Donald's delivering stuff via the MTR in Hong Kong)
In many respects China still lacks the infrastructure to deal with much of the need for RFID, certainly from a computing viewpoint.
Thanks again Hardcore for satisfying my queries. As you rightly say, security is not the main purpose of RFID technology as is being used in China currently. RFID can play a major role in the warehouse managment and I hope most of the supply chain managment software has provided hooks to interface RFID based inventory tracking. My experince at a large shoe store where a large inventory of the shoes is kept in the backside of the store and only sample designs and sizes are kept in the showroom. Everytime you ask for something to be tried the salesman shouts to the back end person to search and bring the required design and size. Its a lot of to-and fro- time consuming activity to serach for the right siza and right design. With RFID tracking it can just be achieved by pressing of few buttons on the PC. Another couple of years and I hope to see RFID being widely used in all departmental stores
Does anyone really know much on the recycling cost of REE or are we just assuming it will be expensive. Ready or not the US will have to figure out how to pay for more expensive Rare Elements when China clamps down on selling from its mines and whatever is available in the open market will be exhorbitive. Then what? Manufacturing disruption of production cycles outside of China?
This will lead to China's entrenched dorminance in both manufacturing and sourcing of electronic supplies. Its time to take Barbara's advice of market opportunities in REE recycling.
Agreed, I myself don't have much information on the cost of this recycling. I agree with your opinion that the future of electronics will rely on recylcing especially with the cut back of rare earth materials.
While RFID seems like it is gaining popularity, I still do not see widespread adoption for the “internet of things” realm. We often have to think very hard to come up with how RFID can improve our lives. But in reality, we are thinking too hard to make this application worthwhile.
I have heard that China may implement RFID readers at the school vicinity so that the parents can keep track of where their kids are given that there are increasing kidnapping involved
I agree. Although RFID does have some critical applications, majority of the new applications seem to be driven mainly by the manufacturers of RFID chips. I dont really find the concept of the internet of things to be much exciting as the complexity involved in actually making it work will never allow this to be market friendly.