Europe’s unused phones and old washing machines an urban mine for raw materials – report

Homes in Europe are full of electronics which could significantly reduce the need for raw material extraction for new products, a report by circular economy NGO Cradle to Cradle found. Europe’s household appliances and consumer electronics contain materials worth 65 billion euros, the NGO says, adding that these are often disposed of without utilising their valuable resources.

In the report, Cradle to Cradle and the Boston Consulting Group analysed the market potential of a circular economy in electronics, focusing on smartphones and washing machines, and concluded that there is significant raw material savings potential in the sector, which could lower costs and risks. Just over 40 percent of e-waste is formally collected across the EU, the report notes. While critical materials make up around 10 percent of e-waste volume, they account for around 75 percent of its value, it added.

At the same time, many old devices are not returned to the economic cycle even if they are no longer used, the NGO found. It said that households on average have 74 electronic devices, and retain 13 of them even though they are no longer used, with nine still functioning and four being out of order. 

Large appliances sold in the EU, such as washing machines, are largely manufactured locally, meaning that circular material design – designing products so that at the end of their lifetime, their materials can be recovered and reused without losing quality and value – could halve the demand for primary materials per new appliance, according to the report. Meanwhile, Europe’s unused phones alone contain critical materials worth an estimated 3.5 billion euros, the authors noted.

“Today’s design decisions will determine manufacturers’ cost position up to 2030,” said Tim Janßen, head of Cradle to Cradle NGO. “Products must be designed in such a way that materials can be cleanly separated and reused. This also opens up a viable market for repair, refurbishment and recycling.”

Raw materials could become Europe’s “Achilles heel”, a German alliance of industry associations has warned, calling on the government to increase raw material supply independence by promoting domestic extraction, prioritising circular economy approaches such as recycling, and creating new partnerships. In June, industry association BDI criticised a government action programme to implement the national circular economy strategy for lacking ambition and failing to create more incentives for change.

With its Critical Raw Materials Act, the EU aims to reach a recycling rate of at least 25 percent for strategic raw materials by 2030, while a “right to repair” requires manufacturers to provide spare parts for products for up to ten years. The supply with sufficient critical raw materials also is a key challenge in the context of Germany's energy transition, as renewable energy sources, electric vehicles and other green technologies all require a cleaner sourcing of their input resources to become truly sustainable.