Cobalt Sourcing Sees 187% YoY Boost Thanks to Domestic Recyclers
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Welcome to this week’s edition of the Thomas Index Report.
In previous episodes, we’ve explored how solar panel recycling is boosting the supply of key materials. Now, let’s see how these creative recycling efforts are entering other industries and how they can further bolster the supply chain.
The Financial Times identified more than 30 clean energy and semiconductor projects valued at more than $1 billion since August 2022. In total, there has been $200 billion worth of investments in these industries since then, thanks to government initiatives such as the Inflation Reduction Act and the CHIPS and Science Act. These investments will boost demand for critical materials like rare earth elements, cobalt, and lithium and staple materials like copper and aluminum.
Some manufacturers are getting ahead of demand by better managing their existing supply. Apple recently announced it is on track to use 100% recycled cobalt, a metal necessary for its battery technology, by 2025. In 2022, the company recycled a quarter of cobalt, two-thirds of aluminum, 75% of rare earth elements, and more than 95% of tungsten from its products, blazing the trail toward its 2030 carbon neutrality goal.
While Apple is more efficient with its materials, companies like REEcycle are leveraging existing waste and reclaiming it for domestic supply. Founded in 2021, REEcycle is the first company to profit from recycling rare earth elements from e-waste like hard drives, wind turbines, electric vehicles, and more. Its patented recycling process has a 99.8% recovery efficiency, where its refined material is sold back to original equipment manufacturers (OEMs). REEcycle helps bypass trade monopolies, boost domestic supply, and create a sustainable e-waste supply chain in one service, creating a secondary supply chain for these hard-to-obtain metals.
Thomasnet.com®’s sourcing data reflects the added push for such materials. Cobalt sourcing is up 187% year over year, rare earth magnets are up 50% year over year, and rare earth metals are up 171% month over month.
As the United States funds more renewable energy and semiconductor manufacturing endeavors in the coming decade, we forecast greater creative deployment of recycled materials to offset such spikes in demand.
I’m Anna Wells, and this is the Thomas Index Report.
Top 10 Categories with the Most Sourcing Activity Month Over Month
- Stampings: Steel: 106500.0%
- Prototypes: Sheet Metal: 43157.1%
- Used Equipment: 41200.0%
- Training Services: 40250.0%
- Tapping Services: 38650.0%
- Software: Manufacturing: 29533.3%
- Castings: Non-Ferrous: 25216.7%
- Adhesives: Aerosol: 24400.0%
- Heaters: 20750.0%
- Cooling Systems: 20100.0%
Check Out Other Recent Thomas Index Report Videos:
- Solar Recycling Opportunities Bring 466% YoY Boost to Commercial and Industrial Solar System Sourcing
- Prototyping Up 719% MoM as 3D Printing Supercharges Product Development
- As Automakers Employ Regenerative Braking, AC Motor Sourcing Is Up 1,275% MoM
- As the Military, Various Sectors Embrace Autonomous Helicopters, Sourcing for Aerospace Contract Manufacturing Is Up 107% YoY
- Sourcing for Sensors Used to Detect Soil Health, Contaminated Water Is Up 134% YoY
