Urban Mining: Waste is the New Ore

Urban Mining

Gold in the trash – and Europe is sleeping through the opportunity

China has shown the way: What was long considered waste is becoming a resource. E-waste – discarded smartphones, laptops, batteries, vehicles and industrial equipment – contains metals that are indispensable for modern technology. Copper, cobalt, nickel, rare earths, gold and silver are found in circuit boards and batteries – in concentrations that are sometimes higher than in natural deposits." Urban mining is the name of this approach, which considers cities as "urban mines". But while China and some Asian countries are strategically expanding their recycling infrastructure, Europe is still in its infancy – despite growing dependence on raw materials and skyrocketing prices.

According to a recent analysis by Handelsblatt (October 2025), a quarter of global gold production is already based on recycled material. In the case of copper and aluminum, the proportion is even over 35%. But the true potential is far greater – and the struggle for resources has long been a geopolitical factor.

What is urban mining – and how does the circular economy work?

Urban mining refers to the recovery of raw materials from existing materials – especially from electronic waste, disused vehicles, industrial waste, buildings, etc.

Circular economy complements: minimizing waste, reusing, repairing, recycling and designing products and processes in such a way that resources remain in use for as long as possible.

Potential: Secondary raw materials can replace or reduce primary mining in order to reduce environmental pollution. Reduces dependence on imports – especially for regions whose commodity exports are politically or economically uncertain. Stabilizes costs, especially with volatile primary raw material prices. Enables innovation: design for recycling, new sorting and processing technologies, new business models (e.g. take-back, leasing, repair).

Hurdles: Technically often more complex: separation and purification of mixed materials, low concentrations of critical rare elements. Cost-effectiveness: Secondary raw materials often have to/want to compete with primary raw materials at low prices – economies of scale, energy prices and regulation play an important role here. Legislation & Regulation: Collection, Return, Consumer Protection, Quality Standards, Product Design, etc.

E-waste potential vs. recovery (EU 2022)

📊 E-waste potential and recovery in the EU (2022)(Source: Investing.com, European Environment Agency EEA, own illustration)

Shortage of raw materials: When the supply chain becomes a risk

The figures are alarming: According to the EEA, around 10.7 million tonnes of e-waste were generated in the EU in 2022  – an amount that continues to grow every year. It contains around one million tonnes of critical raw materials, including gold, silver, platinum, palladium, lithium and rare earths, but only about 400,000 tonnes of these have been  recovered so far – less than 4% of the potentially recoverable materials.

According to the Federal Statistical Office, Germany imports  around 65.5% of its rare earths from China, the EU as a whole 46.3%. China dominates the entire value chain by far: from extraction to refining to processing.

The problem is not new, but it is increasingly strategic: Dependence on Asian suppliers now affects not only high-tech products, but also critical areas such as defense, energy technology and mobility.

Import dependence on rare earths – Germany & EU (2024)

🧭 Import dependence on rare earths (2024)(Source: Federal Statistical Office, EU Commission, own illustration)

China as a blueprint: From waste importer to recycling world champion

China was the largest importer of waste in the world until 2018. Over 20 million tons of waste, including 7 million tons of plastic waste, entered the country annually. But in 2021 came the radical change of course: a complete import ban on solid waste was implemented. Since then, China has been investing massively in its own recycling structures, state-sponsored collection systems and technological processing.

According to  the World Economic Forum,  the country is now a global leader in the recovery of rare metals from waste equipment. The government does not see urban mining as an ecological obligation, but as a strategic competitive advantage.

Chinese Environment Minister Huang Runqiu said in 2024:

"The next raw material revolution will not take place in the soil, but in the garbage."

China is thus aiming for double effects: less dependence on primary raw materials and at the same time technological sovereignty in batteries, semiconductors and magnets.

Europe: Between Regulation and Reality

Europe is recognizing the potential – but slowly. In  its Critical Raw Materials Act (2024), the EU Commission lists  34 critical raw materials whose supply is to be strategically secured. The goal is to  recover at least 15% of these materials from recycling by 2030. But so far, there has been a lack of industrial infrastructure, collection logistics and economic incentives.

A spokesman for the German Federal Environment Agency puts it in a nutshell:

"We have the knowledge, but we don't have the scale."

While government funding programs in China invest billions in recycling centers and research, development in Europe is fragmented. Although clusters are emerging in Belgium (Umicore), France (Veolia) or Germany (Aurubis, Duesenfeld), the big picture is missing: a European strategy for urban mining as part of the industrial transformation.

Europe in Global Comparison: Status, Ambitions, Gaps

Europe has recognized how critical the supply of raw materials is. The EU Commission and member states have launched several initiatives:

• The Critical Raw Materials Act (CRMA), with the aim of implementing certain requirements by 2030: at least 10% of the consumption of certain critical raw materials should come from domestic mining, 40% of processing should take place within the EU and 25% recycled content should be achieved. S&P Global+2Internal Market and Industry+2

• Promoting strategic partnerships with resource-rich countries, while maintaining high environmental, social and governance standards. Heinrich Böll Foundation+1

• Investments and pilot projects: Examples here are the Mercedes / TSR Urban Mining project in Germany, where end-of-life vehicles are to be dismantled regardless of brand and secondary materials are to be processed for new vehicles. Mercedes-Benz Group+1

  
  

Despite these activities, data show that Europe is still lagging behind in many areas:

• The EU often meets less than 10% of its needs for key critical raw materials through domestic production, processing or recycling. S&P Global+1

• Many new projects are in very early stages. Approval procedures, environmental impacts, social acceptance and high costs are slowing down the expansion of mines or refineries. S&P Global+1

Import dependencies remain high: e.g. rare earths, gallium, germanium, magnesium, etc. come to a large extent from China. Internal market and industry+2European Commission+2

Current examples from Germany / Europe

Other projects:

• Lithium extraction from geothermal plants in Germany (e.g. Upper Rhine Graben) is being researched as a source within Germany. t-online+1

• Research & policy: Studies such as those conducted by KfW / Fraunhofer ISI shed light on dependence and ways to reduce it through recycling, substitution and diversification. Deutsche Welle+1

  
  

Dependence on raw materials: a risk for industry and security

For European industry, a shortage of raw materials has long been a competitive factor. Automotive suppliers, semiconductor manufacturers and energy companies are fighting for stable supply chains. Rising demand, climate/environmental protection regulations, and increasingly complex supply chains are driving up the prices of many critical raw materials.

According to a study by Fraunhofer ISI (2024), over 70% of companies in the field of electromobility and defense depend  on critical raw materials that come from just three countries: China, Congo and Chile.

The topic is also becoming explosive in the defense industry. A procurement manager of a large defense company (anonymous, 2025) said:

"Rare earths are just as crucial for precision systems as steel is for tanks. Urban mining can defuse the Achilles' heel of Europe's defence capability."

According to internal reports, the Bundeswehr itself is working on concepts to systematically recover old equipment, sensors and electronics. NATO now assesses raw material security as a "strategic resilience issue".

Technological advances: From manual recycling to AI-driven raw material recovery

Modern recycling processes are changing the playing field. Where dismantling and shredding used to be done manually, AI systems, optical sensors and robotics are now taking over the process.

Start-ups such as Reco-E (Sweden), UrbanMine (Japan) or Duesenfeld (Germany) show how efficiently this can be done:

• Reco-E uses neural networks to identify metals based on their reflection behavior.

• UrbanMine has developed a process that can extract 98% of the gold from printed circuit boards.

• Duesenfeld recycles lithium-ion batteries almost emission-free – an important step for e-mobility.

These technologies not only reduce costs, but also reduce the environmental impact by up to 80% compared to primary mining.

Urban mining as part of the circular economy

Urban mining is not an isolated concept, but the core of a true circular economy.Instead of "take – make – waste", the new paradigm is "collect – reuse – remine".

If products are optimized for recycling as early as the design stage, the material cycle can be closed. This is where a new industrial policy begins: away from linear consumption and towards sustainable value creation.

As an example, Apple shows that it works: The company recovers over 2,000 kg of gold, 1,000 tons of aluminum and 700 tons of copper from old iPhones every year  . CEO Tim Cook said in 2024:

"Our devices are too valuable to throw away – they are our source of raw materials for tomorrow."

How could urban mining solve important problems of the future?

Here are concrete mechanisms and strategies – plus where challenges lie.

Limits and risks

• Not all materials can be recovered efficiently or economically – e.g. in the case of highly complex components, very small quantities or heavily contaminated alloys.

• Recycling processes themselves can be environmentally or energy-intensive – without clean energy sources, there is a risk of compromises in climate protection.

• Quality assurance: Secondary material must meet the technical requirements (especially in mobility, aviation, armaments) – corrosion resistance, purity, mechanical properties, etc.

• Market price risks: If primary raw materials are cheap, the economic incentive for recycling is eliminated. Without suitable political frameworks or combinations with sustainability goals, urban mining remains a marginal activity.

• International trade and environmental policy: Cross-border waste streams, import bans, environmental standards – complex, often conflict-laden issues.

  
  

Global Context: From the Raw Materials Economy to the Recycling Economy

There is a growing global awareness that resources are the new currency of geopolitical power. The U.S. is investing $369 billion in recycling technologies through the Inflation Reduction Act program, Japan is embracing "urban mining parks," and even resource-rich countries like Australia are developing recovery strategies to diversify their exports.

The International Energy Agency (IEA) estimates that demand for critical raw materials  will increase by 400% by 2040  – just through the expansion of batteries, wind power and semiconductors. Without urban mining, this demand will hardly be able to be met.

Conclusion: From waste to strategic resource

Urban mining is more than recycling – it is a geopolitical, technological and economic necessity. The urban mine is right in front of us: in old equipment, cars, buildings and infrastructure. Those who use it gain twice – in raw materials and in sovereignty.

Europe is at a turning point. Regulatory ambition and industrial reality will determine whether the continent will remain an importer of raw materials or become a recycling champion.