Mining cobalt from waste: Capturing lost value in a responsible cobalt value chain
Did you know over 34,000 tonnes of cobalt ended up in e-waste globally in 2022? [1]
That is equivalent to a sixth of the global supply of primary mined cobalt in 2022 or, if you like, more than one-and-a-half Olympic swimming pools in volume. Millions of internal combustion engine vehicles could be displaced with this cobalt.
Cobalt is an essential metal for the energy transition, particularly in electric vehicle (EV) batteries. It is an essential metal for jet engines and industrial processes where corrosion resistance and high strength are needed at high temperatures and is used in catalysts vital for industry. It also more directly supports our everyday life, including in the batteries of our portable consumer electronic devices (and that you may be reading this on!).
As an infinitely recyclable metal, and a critical raw material, it is vital that we have good stewardship of cobalt. This means we should recover and recycle these materials responsibly, rather than let this strategic resource be squandered in landfills or be left to languish in a drawer as many a discarded mobile phone or laptop does today.
What do we mean by responsible?
Recycling is generally perceived as inherently a good thing. But whilst secondary cobalt is an important economic source of material, it is important that all impacts connected to it are identified and addressed. Robust environmental and human rights due diligence aligned with international frameworks must take place in the same way as would be done for primary material. It is also good risk management. This is true for all sources of materials.
And of that aforementioned e-waste, less than a quarter is formally documented as recycled, and a quarter ends up in landfill, never to be recovered. The remainder is collected by the informal sector. In the case of e-waste dumping in countries In West Africa, for example, this means vulnerable communities often working in hazardous and precarious conditions to recover material as informal waste pickers.
So, what can we do to improve this situation, and how can we ensure that we build truly circular and responsible global cobalt value chains going forward?
These are questions we seek to explore in our report Responsible Secondary Cobalt, which Cobalt Institute recently published.
Our latest report builds on Towards a Circular Value Chain of Cobalt, which provided an overview of opportunities for circular economy throughout the cobalt value chain. A key finding of the 2023 report was that the majority of cobalt losses occur both at the mine site (often in tailings and mining waste), but also in the form of lithium cobalt oxide (LCO) batteries in end-of-life consumer electronics.
And thus, the focus of Responsible Secondary Cobalt is batteries. It considers improving collection, easing transportation to recyclers and achieving a global circular economy of cobalt.
The report takes four geographical lenses and looks at the risks, blockers and opportunities for secondary cobalt:
- International – looking at international conventions, including the Basel Convention.
- European Union – where the EU Battery Regulation is expected have significant impact on the recovery of EV batteries.
- United States – where there is significant growth in the market for recycling.
- West Africa – taking Ghana as an example of where e-waste dumping has led to informal waste picking.
Three main conclusions are reached:
Cobalt losses at end-of-life are primarily due to inadequate end-of-life battery collection systems
- To improve collection rates globally, industry should advocate for policymakers to implement extended producer responsibility covering portables and EVs in high-income economies, where the manufacturer is responsible for recovery of the end-of-life battery.
- To help boost secondary cobalt supply from low-income economies, and to mitigate the actual and potential environmental and human rights risks associated with spent lithium-ion batteries, the industry could facilitate collaborative dialogue between informal battery collectors, the public sector, and industrial cobalt recyclers.
Global battery recycling capacity remains highly concentrated geographically
- To address this, industry can leverage geopolitical concerns about critical raw material sovereignty to support companies in building out regional cobalt recycling hubs across the globe. Companies looking to make investments in new recycling facilities where infrastructure is currently lacking can seek support from multilateral organisations and through legislation that has made funding available.
International trade in secondary cobalt feedstocks faces major obstacles
- Industry can help streamline international flows of secondary feedstock by advocating for harmonised global waste classifications for spent lithium-ion batteries and black mass, and support efforts to improve the Prior Informed Consent [2] procedure in the Basel Convention. Industry could also consider outreach to the World Customs Organisation in support of developing a Harmonised System (HS) trade code for black mass.
Cobalt can offer a truly circular contribution to the energy transition, but some 5.5 million tonnes of cobalt will be needed for batteries by 2050. It is vital that we have the right policies in place today to ensure we capture cobalt’s full value in the future, sourcing more of this cobalt from the “urban” mine.
[1] The Global e-waste Monitor 2024: https://ewastemonitor.info/the-global-e-waste-monitor-2024/
[2] The Basel Convention sets out a detailed Prior Informed Consent (PIC) procedure with strict requirements for transboundary movements of hazardous wastes and other wastes. It requires notification to and consent from national authorities when materials cross their boundary.
