3. Major manufacturing companies consider
minerals and metals scarcity as an important
issue for their business, but do not see
sufficient awareness of this topic among all
their stakeholders
The Ticking Time Bomb, PwC, November 2011
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
4. over 80% of CEOs of manufacturing
companies said raw material shortgaes was a
risk to their business in 2012
EEF membership survey, December 2011
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
5. A recent Eurobarometer survey of European
entrepreneurs found that 75% have seen
material costs in their business increase...
87% said they expect prices to continue rising
CBI ‘Made to Last’, December 2011
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
7. UK resource secturity action plan
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
8. relation between world production and demand for future technologies
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
9. what causes supply risk?
geostrategic risks geological availability
access to markets life time of resources,
concentration of exploration activities
production, social and
environmental limits
market power technical availability
high concentration of supply/demand capacity
production in a few in mining, processing,
countries or companies metallurgy and transport,
production costs
speed of R&D dependence on imports
recycling, substitution, importance of the mineral
material efficiency, domestic value chain
mineral production
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
12. Key issue 1
Many critical metals are traded in relatively small
quantities, compared to steel, copper etc. and the
supply is concentrated in a few countries.
These countries have the ability to control supply for
speculative, political or geo-strategic reasons
Mining and extraction is a slow and inelastic system. It
can take 15 years or more to get a mine into production
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
17. Key issue 2
Material criticality affects a number of materials
simultaneously thus causing complexity for the supply
and demand side.
For example, supply shortages for several critical
metals may occur at the same time.
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
21. Key issue 3
Currently recycling rates are minimal due to diffusion,
product design and business models
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
22. recycling rate for 60 metals
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
23. recycling rate for 60 metals
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
25. recycling rate for 60 metals
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
26. Key issue 5
The social and environmental limits. Many people
demand iPhones and iPads but would not like a mine in
their neighbourhood.
& conflict metals
& declining grades of ore requiring more energy to
extract
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
28. according to UNEP
Since 1990, at least 18 violent conflicts have been
fuelled by the exploitation of natural resources.
40% of all intrastate conflicts since 1960 have a link
to natural resources
Intrastate conflicts linked to natural resources are
twice as likely to relapse to conflict in five years.
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
29. Key issue 6
On the demand side (manufacturing, retail) there is
complexity regarding substitution or maintaining
performance while using resources efficiently.
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
30. 45% of all electrical energy goes to motors
–7000 TWh/year
–6040 Mt CO2/year
•>99% of all electrical energy from electrical generators
•40M electric motors produced in EU / US every year
•12M Electric Vehicles per year by 2030 requiring large,
volume produced electric motors (Credit Suisse)
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
36. value of gold in EEE we buy each year in UK is
estaimated at £350 million
by 2020 the UK will dispose of 12 million tonnes of
WEEE = £1 billion of palladium and £380 indium
1/4 of WEEE sent to recycling could be repaired and
resold = £200 million p/a
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
37. Recycling has an energy efficiency 2x to 10x times better than primary extraction
Metals thrown away, and not recycled, represent each year in Europe more than 7
billions euros lost, in metals value terms.
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
38. recovery rates depend on
material composition accessibility / quality of mechanical quality of metallurgy
type of connections removal of key parts seperation
(catalysts, batteries, PCB)
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
39. dissipation
residue
use
residue
product new scrap
end of life
manufacture
recycling residue
industrial
materials
residue raw materials
historic waste
ores (tailing, landfill)
concentrates
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
40. dissipation
residue
ecodesign
use
design for disassembly
dematerialisation recyclability
residue
product new scrap close loop end of life
manufacture
recycling residue
industrial
substitution
substitution
materials
residue raw materials
historic waste
ores (tailing, landfill)
concentrates
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
42. • Small Business Research Initiative (SBRI) on feasibility of new approaches
to gain value from domestic and commercial waste streams (i.e. through
re-use and recovery) (Lead: Defra with the TSB)
• improving data capture of WEEE (Lead: BIS)
• critical resources dashboard (ES KTN, BGS etc.)
• development of a materials flow analysis for WEEE ‘hot spots’ (Lead: WRAP)
• recycling demonstration trials (Lead: WRAP)
• industry-led consortium to further develop links between government,
business and other organisations (Lead: Green Alliance)
New designs for a circular economy (tbc) TSB with RSA & Ellen MacArthur
Foundation
Ecodesign Centre Critial Material briefing for Welsh Government, June 2012
