Oakdene Hollins Opportunities in Recycling “Critical Raw Materials” Peter Willis 17th March 2011

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Oakdene Hollins’ Work Study into the feasibility of protecting and recovering critical raw materials through infrastructure development in the South East of England (European Pathway to Zero Waste, 2011) Assessing rare metals as supply chain bottlenecks in priority energy technologies (European Commission Institute of Energy, 2011) Lanthanides resources and alternatives (Department for Transport, 2010) Materials security: Ensuring resource availability for the UK economy (Resource Efficiency KTN, 2008)

Agenda What are the EU “Critical Raw Materials”? Best Opportunities for Investors: Aerospace RE Magnets Flat Panel Displays Batteries Gap Analysis of Opportunities Conclusions

Defining “Critical Raw Materials” European Commission (2010) study “Critical Raw Materials for the EU” 41 metals and minerals assessed Combination of 2 factors: Economic Importance Main applications Substitutability Supply Risks Stability of producing countries Diversity of supply Recycling

14 “Critical Raw Materials” Production Volumes (tonnes) Large Volumes Small Volumes Fluorspar – 5,100,000 Indium – 1,200 Graphite – 1,130,000 Tantalum – 1,160 Magnesium – 760,000 Platinum Group – 445 Antimony – 187,000 Beryllium – 140 Rare Earths – 124,000 Germanium – 140 Tungsten – 94,000 Gallium – 118 Niobium – 62,000   Cobalt – 62,000 Source: mostly USGS for 2009; includes recycling where available

Current Importance of China China as leading producer of 9 materials: Rare Earths (97%) Antimony (91%) Tungsten (81%) Magnesium (77%) Graphite (71%) Germanium (71%) Fluorspar (59%) Indium (50%) Gallium (32%) Other Leading Producers: Brazil: Niobium (92%) US: Beryllium (86%) Platinum Group: South Africa (61%) Tantalum: Australia (48%) Congo Kinshasa: Cobalt (40%) Source: USGS for 2009

Demand for “Critical Raw Materials”

Forecasts for “Critical Raw Materials” Antimony Germanium Niobium Fluorspar Gallium Magnesium Tungsten Cobalt Rare Earths Graphite Tantalum

Prices of “Critical Raw Materials” Source: mostly Metal Pages

Dominant Applications Seven raw materials have over half their consumption in a single application: Antimony (Flame Retardants – 72%) Fluorspar (Chemicals - 60%) Gallium (Integrated Circuits – 66%) Germanium (Optics – 55%) Indium (Flat Panel Displays – 74%) Magnesium (Casting Alloys – 50%) Niobium (Steel Alloys – 83%) Platinum Grp (Catalysts – 60%) Tungsten (Cemented Carbides – 60%) Source: European Commission (2010)

Screening Methodology Selection Criteria: Include all dominant applications Analyse markets using multiple raw materials Rank economic value of raw material contained Examine carbon impacts of markets Selected 12 markets for further analysis: Supply chain maps Existing practice infrastructure Technical feasibility & economic viability Stakeholder consultation

High Opportunities – Aerospace Up to 12,000 aircraft to retire by 2020 Move away from ‘wild destruction’ Smart dismantling can recover 85% of weight Reuse superalloys in engines (Co, Nb, Ta) & landing gear (Be) Recycle (Al-Mg alloys) Implementation by accreditation & standards Source: Airbus

High Opportunities – RE Magnets Hard disk drives (HDD) as current opportunity Hitachi with process to cut HDD & remove RE magnets for recycling Need to segregate, not shred with WEEE Wind Turbines & (H)EVs as long term opportunity due to long lifetimes Source: Hitachi

High Opportunities – Flat Panel Displays 80% of In used to make ITO (mostly for FPs) Recycling of In process waste common Easy to separate FPs from WEEE as easily recognisable Pilot scale technologies being developed to remove ITO to recycling Medium timeframe for FPs in waste stream Solar PV for long term Source: Valpak Source: WRAP

High/Med Opportunities – Batteries 800 t of NiMH, 600 t of Li-ion in UK waste Low collection rates for portable batteries: NiMH (2%) & Li-ion (1.5%) Need for better collection & labelling Co recovered but RE & Graphite lost in slag Optimise recycling (H)EV batteries as long term opportunity Possible (cascaded) reuse Source: Valpak

Other Opportunities Identified Improve collection: Beverage Cans (Magnesium) Catalytic Convertors (Platinum Groups) Medium Opportunities: Cemented Carbide Tools (Cobalt, Tungsten) Catalysts (Rare Earths) Flame Retardants (Antimony) Steel Production (Graphite, Fluorspar)

Gap Analysis on Recycling

Conclusions Recycling not enough: Recycling can contribute to supply: High demand growth Long product lifetimes Problem of dispersive usage Recycling can contribute to supply: Improve collection Advanced sorting techniques Implement new technology Design for disassembly & reuse Some raw materials with little opportunity: Dispersive applications Consumed in process

Read the full report, available shortly on our website! Peter Willis peter.willis@oakdenehollins.co.uk www.oakdenehollins.co.uk Read the full report, available shortly on our website!