Europe anticipates recovery of over 10,000 tonnes of rare earth elements by 2040

In Europe, the demand for critical materials has surged, largely due to the growing reliance of emerging technologies on these materials, such as semiconductor components, battery metals, and rare earth elements. A report by IDTechEx, published in early April 2025, highlights the escalating efforts in recycling technologies aimed at recovering critical materials from end-of-life products, especially amidst China's restrictive export policies. These restrictions have affected the availability of essential materials like tungsten and tellurium, which are crucial for defense and industrial applications. The report indicates that by 2030, Europe is aiming to meet 25% of its demand for strategic raw materials through recycling initiatives, marking a significant shift in how resources are sourced and utilized. As China has intensified its export controls beginning in 2024, European industries are stepping up their recycling capacities, particularly focusing on lithium-ion batteries and rare earth elements. The ability of Europe to meet these targets is contingent upon the effectiveness and scaling of various recycling processes, with hydrometallurgical techniques expected to outperform pyrometallurgical ones in efficiency. IDTechEx anticipates that by 2040, a considerable volume of rare earth elements, possibly exceeding 10,000 tonnes yearly, will be reclaimed from discarded products and waste streams. This recovery is essential as European projects look to bolster their strategic supply chains without being overly dependent on external sources, particularly from nations imposing export limitations. The recycling sector is becoming critical, as the region aims not only for economic viability but also for sustainability in securing essential raw materials. The future of critical material recovery in Europe hinges significantly on the development and implementation of recycling technologies. Success stories have emerged in sectors like germanium and platinum group metals, showcasing the potential of recycling to meet escalating demand. The advances in critical material recovery stand as both a response to global supply chain pressures and a proactive measure to address environmental impacts in the long run. Exploring these avenues will lead to enhanced supply chain resilience, offering Europe an opportunity to transition towards a more circular economy that reduces waste while ensuring the flow of necessary materials.