Access to rare earth materials (REM) — lithium, cobalt, tungsten, nickel, and graphite — is key in the production of batteries, semiconductors, wind turbines, high-tech defense equipment, and medical devices. Geopolitical struggles for access to these materials dominate the world scene. China has about half of the world’s reserves of these elements; Ukraine’s deposits are estimated at around 5 percent but are located mostly in the east and south regions of the country, areas controlled or contested by Russia. China’s dominant position in the supply chain for these materials gives it significant global influence and leverage. It has shown a willingness to use this influence.
The vulnerability of advanced economies to the unequal distribution of REM has spurred investment in developing alternatives. Innovation in battery technologies is one example. Recycling is another strategy to reduce dependance on REM imports.
Europe has made “urban mining,” the process of extracting valuable materials from used electronics and buildings, a major approach to increase its resource independence and climate resilience. A 2024 European Union (EU) law, the Critical Raw Materials Act, aims to recapture 25 percent of these vital materials through recycling by 2030 — a big increase from the current one percent. A recent study estimates there are about 700 million unused smartphones in European homes. On average, there are 74 electronic devices in each home, 13 of which are unused and stashed away.
EU member states are ramping up efforts to collect and process electronic waste. There are already 2,700 facilities recovering precious metals from tossed-out equipment. Europe is expanding the urban mining concept to the 40 percent of its total waste that comes from construction and demolition. It is adopting newer technologies that allow high-quality recycling of materials so they can be used in new buildings. This contrasts with the downcycling approach where, for example, concrete gets crushed for reuse as road base. Some EU countries are now requiring pre-demolition inventories of materials as a step toward more intentional reuse.
Moving beyond recycling, the EU is expanding its embrace of circular economic principles. According to the European Environment Agency, 20-25 percent of building emissions are embedded in construction materials. By rethinking the building process, incorporation of modularity, adaptive reuse, and design of equipment for longevity and repair, strategies can reduce both waste and emissions. The EU is expecting to have a new Circular Economy Act ready for 2026.
The U.S. can benefit from the EU example. Rather than using tariff threats and causing uncertainty in global markets, we could invest in the infrastructure to capture strategic elements from old electronics. Treating discarded materials as strategic assets can address climate change and perhaps keep us out of future conflicts.
