A research report said on the 30th that the domestic recycling rate of rare earth metals, for which Korea has a high dependence on imports from certain countries, remains at 0%.
According to the report "Urban mining activation plan to secure critical minerals" released by the Korea International Trade Association Institute for International Trade and Commerce, the recycling rate of rare earth metals such as cerium, lanthanum, neodymium, and dysprosium was found to be at 0%.
In contrast, the recycling rates of traditional minerals and secondary-battery minerals were found to be high. The recycling rate of traditional minerals was found to be 99.3% for copper and 95.5% for aluminum. For secondary-battery minerals, manganese recorded 100.5%, nickel 94.7%, cobalt 84.5%, and lithium 48.4%.
The report analyzed that the poor recycling rate of rare earths is due to factors such as: ▲ price declines driven by China's expanded supply ▲ low economic viability caused by a shortage of domestic waste electronics ▲ technical constraints, including complex separation and refining processes ▲ a lack of detailed statistical systems.
The report noted that the amount of domestic waste generated in 2023 reached 176 million tons (t), and that industrial sludge, automobiles, and electrical and electronic products—the main feedstock for the urban mining industry that recycles metals contained in waste—are included in large quantities, and said the urban mining industry should be activated to raise the recycling rate of rare earths.
To that end, it proposed: ▲ establishing recycling clusters tailored to the characteristics of each mineral ▲ preparing price stabilization mechanisms for recycled materials, such as contracts for difference and price ceilings and floors ▲ expanding domestic collection channels ▲ easing tariffs on recycled raw materials ▲ building a monitoring system to accurately identify industrial demand and recoverable volumes.
Park So-young, a senior researcher at the Korea International Trade Association, said, "In a situation where the global mineral supply chain is being shaken by geopolitical risks, urban mining is a strategic asset that can be built relatively quickly," and added, "The government, corporations, and local governments should cooperate to gradually advance the collection system, technology, and industrial base."