REE Recycling Hits a Wall: Why Multimetal Smelters Can't Save the Rare Earth Supply Chain

Jun 11, 2025

2 minute read.

Highlights

  • Current multi-metal recycling processes systematically fail to recover rare earth elements (REEs) due to structural limitations in processing technology.
  • Electronic waste smelting furnaces destroy tiny but critical REE magnets from devices like smartphones, with no effective way to extract them.
  • A technological revolution in robotic e-waste sorting and preprocessing is crucial to enable effective and sustainable recycling of rare earth elements.

Despite the circular economy hype, modern multi-metal recycling processes are systematically failing to recover rare earth elements (REEs)—and that’s no accident. According to Professor Koen Binnemans (opens in a new tab), head of the SOLVOMET Group and a leading metallurgy expert at KU Leuven, the problem isn’t just technological—it’s structural.

“Today’s pyrometallurgical recycling systems, like those used by Umicore or Aurubis Beerse, are optimized for gold, silver, copper, and tin—not neodymium or dysprosium,” Binnemans explains. These systems incinerate electronic waste in smelting furnaces, capturing precious metals in molten copper and disposing of the rest in slag or flue dust. Unfortunately, REEs, which have a high affinity for oxygen, are lost in the process, resulting in concentrations in the slag that are too low for economic recovery.

The irony? Our smartphones and laptops are filled with tiny yet critical REE-based magnets, often weighing just 0.5 to 5 grams. The global stockpile is massive, but unless we dismantle devices before they hit the furnace, those rare earths are gone forever.

That’s the real bottleneck: preprocessing**.** Modern smelters cannot compensate for the absence of dedicated dismantling systems. Manual removal of magnets is labor-intensive and unrealistic. What’s needed is a revolution in electronic waste sorting—robotic systems, guided by advanced sensors and AI, that can isolate REE magnets before incineration.

Until industry and policymakers prioritize this preprocessing challenge, rare earth recycling will remain a myth. Pyrometallurgy is a dead end for rare earth elements (REEs). Without profound structural change—including design for disassembly and investment in smart dismantling infrastructure—the promise of urban mining will continue to overlook the most critical materials of the 21st century.

Source: Professor Koen Binnemans, SOLVOMET R&I Centre, SIM² KU Leuven

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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