Rare Earth elements in the ITAD supply chain are becoming more prominent, as they are typically used for magnetism, thermal stability, and even energy efficiency. Rare Earth elements are a group of 17 metals used in electronics, often found in IT equipment that will later be part of the ITAD supply chain. They play a crucial role in today’s IT products and help modernize them, making these technologies more efficient and reliable. Data centers, cloud computing, and the adoption of AI hardware require more servers, cooling systems, and storage, resulting in greater demand for REEs. That results in more REE equipment being added to the ITAD cycle.
What Are Rare Earth Elements?
Rare Earth elements are 17 metals that are not necessarily geologically rare but are challenging to separate and refine. Processing these elements requires specialized infrastructure and creates environmental challenges that can limit the available supply of the element. These elements are also crucial to national security, technology, and energy, which has led to their classification as a “critical material.” Rare earth elements are used in IT equipment across many different technologies and avenues. For example, Neodymium and dysprosium are used in magnets for hard disk drives, motors, and fans. Lanthanum is used in batteries and optical components, while Europium and terbium are used in LCD and LED screens for color accuracy and brightness.
The Role of ITAD in Rare Earth Element Recovery
Rare Earth element recovery plays a significant role in ITAD, as it is a crucial component of many technologies. Let’s take a deeper look into how ITAD plays a role in rare earth element recovery:
ITAD is the First Checkpoint in Recovery
When it comes to rare earth element recovery, ITAD is the first checkpoint, as ITAD providers determine whether equipment can be recycled, reused, or destroyed. This decision about the equipment’s fate will determine whether those elements are preserved or lost. If a piece of equipment is recycled or reused, the rare earth elements will be retained during the process; however, if the equipment is destroyed, those elements will be lost.
Working With Existing ITAD Processes
When reviewing existing ITAD processes, secure data destruction is necessary, but it often involves dismantling. It’s crucial to perform proper sorting to ensure that rare-earth elements are separated before bulk processing. With your current ITAD workflow, rare earth recovery doesn’t require you to redesign your setup; it simply requires strategically enhancing the existing process to preserve those elements before they are destroyed.
From Disposal to Resource Management
ITAD is already viewed as part of the circular economy, with a strong focus on recycling and reusing devices. This will continue as we investigate rare-earth element recovery in the ITAD process, given the need to preserve these elements from devices before destruction if they are not being recycled or reused. With this recovery, the value of ITAD grows significantly within supply chains and across the product lifecycle.
The Economic Value of Rare Earth Element Recovery
There is significant economic value in rare-earth recovery for ITAD practices and providers. From new revenue opportunities, cost offset, and market differentiation, there is value across the spectrum in rare earth element recovery and ITAD.
New Revenue Opportunities for ITAD Providers
ITAD providers can unlock new revenue opportunities by working with recovered rare-earth materials. This is due to the ability to sell them to downstream processors or manufacturers, which generates additional revenue. In fact, rising material prices are a strong incentive for the provider to recover revenue. With recovery a vital part of the process and ITAD essential for technology, pairing the two creates opportunities for ITAD providers across the board, including revenue.
Operational Efficiency and Cost Offset
There is revenue from recovered materials that can offset recycling, transportation, and compliance costs typically incurred by ITAD workflows. This cost offset helps mitigate potential revenue loss, improving your financial standing with your ITAD process.
Market Differentiation
Offering rare-earth recovery can be a standout differentiator in the market and help you stand out in competitive bids. Clients seeking partners who deliver sustainability and supply-chain benefits will likely see the value you bring through rare-earth recovery in your ITAD processes. This is a great way to stand out, build new connections, and offer more services that benefit your clients.
Future of Rare Earth Element Recovery in ITAD
The future of rare earth element recovery continues to show growth in demand for recycled rare earths as supply begins to tighten. Manufacturers are constantly seeking secondary materials, so the value of rare-earth element recovery in ITAD remains persistent. The investment in domestic recovery coffers yields benefits such as recycling initiatives and reduced reliance on foreign materials. As recovery gains popularity, it may become the baseline for ITAD expectations, so implementing rare-earth recovery sooner rather than later would benefit your business.
What Does This Mean for ITAD Providers?
For ITAD providers, the growing value of rare earth elements will drive them to implement recovery practices that strengthen their supply chains, improve sustainability, and deliver economic value to their companies. ITAD is moving beyond the disposal of IT devices; it’s taking on a larger role as we look ahead. As an ITAD Provider, it’s crucial to implement rare earth recovery in the near future, as it will benefit your company. For example, providers that invest now will be much better positioned as the demand and expectations around rare earth elements grow. ITAD providers should consider rare earth element recovery, the growth we expect to see in that industry, and how they can be part of the future of ITAD, with recovery as an expectation. Contact us today to learn more.
