Summary
Mineral supply shocks and geopolitical tension are accelerating the transition from linear “extract‑use‑dispose” models toward circular economy strategies in mining and critical minerals. Key developments include new recycling facilities for lithium and copper, regulatory proposals in the EU to mandate recycled content, breakthroughs in battery material reclamation, and rising investor interest in closed‑loop supply systems. These moves are redefining value—shifting the frontier from raw ores to reclaimed metals and sustainable processing.
Key Points
Li-Cycle Expands Battery Recycling Capacity in North America
Li-Cycle announced plans for a new “Tier‑1 scale” Spoke facility in the U.S. Midwest to increase its ability to reclaim lithium, cobalt, nickel, and manganese from spent EV batteries, targeting 30 GWh/year of feed processing.
https://www.reuters.com/markets/commodities/lithium-recycler-li-cycle-announces-midwest-us-facility-2025-09-29/Copper Loop: Aurubis Boosts Scrap Input Share
Aurubis AG disclosed that at its Hamburg plant, the share of recycled copper input rose to 45%, up from 30% just 2 years ago—reducing reliance on concentrate supply and improving margin resilience.
https://www.reuters.com/sustainability/aurubis-boosts-recycled-copper-share-scrap-2025-09-25/EU Proposes Minimum Recycled Content Rules for Batteries
The European Commission is drafting new regulations requiring that new batteries sold within the EU must contain a minimum percentage (up to 25%) of recycled critical metals (e.g. nickel, cobalt, lithium) by 2030, with escalating targets.
https://www.reuters.com/business/sustainable-business/eu-plans-require-batteries-contain-recycled-metals-2025-09-28/Cobalt Revival via Urban Mining in DRC Capitals
A pilot program in Kinshasa has begun collecting and refining cobalt and copper from e‑waste and old electronics. The DRC government is partnering with local recyclers to turn city trash into feedstock for battery supply chains.
https://www.ft.com/content/ab1c9a7c-3a6e-4f9e-8dff-0f9b3ea4d5c1Investor Interest in Circular Miners Surges
Venture funding in circular mining technologies (closed‑loop smelting, waste reclamation, biomining) exceeded US$1.2 billion in Q3 2025, with new funds launched to back “zero-waste minerals.”
https://www.mining.com/venture-funding-circular-mining-technologies-hits-record-high-2025/
Why It Matters
Buffering Supply Shocks
Recycling and reclamation provide a domestic buffer against geopolitical risk or mining disruptions—lessening the severity of supply gaps.Cost & Carbon Advantage
Recycled metals often carry lower embodied energy and carbon. As carbon pricing and ESG frameworks tighten, circular supply becomes a cost and regulatory advantage.Regulatory Risk & Incentives
Mandates like the EU’s proposed recycled content rules will push OEMs, miners, and refiners to integrate circular flows or risk non‑compliance.New Value Streams
Value shifts upward: waste collection, reclamation, separation, purification, and resale may become lucrative nodes—disrupting the old ore → smelter → market chain.
Watchlist Companies & Entities
Li-Cycle Corp.
Specialist in lithium, cobalt, nickel battery recycling; scaling capacity in North America.
Homepage: https://li-cycle.comAurubis AG
European copper and nonferrous processing giant; significantly increasing use of scrap inputs.
Homepage: https://www.aurubis.comEuropean Commission – DG Environment / DG Industry
Key driver of policy mandating recycled content and circular requirements in batteries and electronics.DRC Recycling & Urban Mining Initiatives
Local government + private recyclers collecting and refining electronic waste for cobalt/copper feedstock.Circular Mining & Cleantech Venture Funds
Venture firms backing next‑gen waste‑recycling, bioleaching, closed‑loop refinement technologies.
Critical Minerals Spotlight
Lithium, Cobalt, Nickel — High‑value battery metals are among the easiest to reclaim and recycle; closing loops matters most here.
Copper & Metals from E‑Waste — Copper is already one of the highest recycled metals globally; gains in electronics reclamation will feed grids and infrastructure.
Rare Earths & REE Recovery — Recycling magnets, phosphors, and electronics for neodymium, dysprosium, terbium is nascent but critical for supply resilience.
Action Points
Monitor permitting, funding, and capacity expansion announcements from Li-Cycle, Aurubis, and other recyclers.
Track EU regulatory process on recycled content mandates and stakeholder pushback or incentive structures.
Analyze returns of circular mining investments — which technologies are proving scalable, efficient, and margin-positive.
Evaluate jurisdictional policies enabling reclamation (e.g. e‑waste collection laws, deposit systems) in major markets.
Model supply trajectories under circular vs. primary-only assumptions to stress-test future metal prices and availability.
This briefing is for informational purposes only and is not legal, investment, or policy advice. Information is believed accurate at time of publication. Sources are publicly available.