Rare-earth elements in the circular economy: The case of yttrium

This paper discusses the economic rationale of recycling exhaustible raw materials and assesses how a circular economy perspective can improve the sustainable use of critical raw materials (CRMs). We use the case study of yttrium, a rare-earth element (REE) on the EU list of CRMs, given its widespread use in the electronics industry and the geopolitical concentration of its supply. Even if recycling REEs from waste electric and electronic equipment is a valid alternative to extraction from mines, as proposed by the circular economy paradigm, less than 1% of REEs used today are recycled. Nevertheless, studies on the economic benefits of recovery REEs are very limited. In this paper, we present the business case of an Italian recycling company, Relight Ltd., and its HydroWEEE project, to recycle REEs such as yttrium, from spent lamps. In environmental terms, recycling REEs has a much lower impact than their extraction from virgin source. In economic terms, it is profitable to recycle yttrium if its market price is above 14(sic)/kg, and above 9.54(sic)/kg taking in consideration the external costs of mining. Therefore, in 2012 and 2013, recycling was profitable thanks to the high price of yttrium, while between 2014 and 2016 recycling was not cost effective. In these cases, policymakers must incentivize recovery and recycling solutions with appropriate policies.