Using AI and circular economy principles to source and recycle critical metals

By Niall Beamish

Summary

As the world transitions to net-zero, battery metals are quickly becoming the “new oil”.

However, current mining practices for battery metals do not include coherent or robust environmental, social and human-rights frameworks.

To make the energy transition climate-proof, resource-efficient, and socially just, the sourcing of critical raw materials (CRMs) must follow circular economy principles that maximize resource efficiency.

Niu-Niu, a Mexican company founded in 2022, uses AI to sort critical metals from e-waste. The metals are then recycled and used in electric vehicle and battery production.

Niu Niu demonstrates that recycling CRMs at scale is entirely possible and feasible.

As the world transitions to net-zero, battery metals are likely to become the “new oil”. These critical raw materials are used in a growing array of products, from renewable energy technologies to electronic equipment and batteries for electric vehicles.

Since mining remains the main source for battery metals, the sustainable management of these materials is key to tackling climate change and human rights abuses.

However, current mining practices for battery metals do not include coherent and robust environmental, social and human-rights based frameworks:

Lithium mining practices are highly water intensive, and have a negative impact on local agriculture and habitats.
Cobalt mining is commonly referred to as ‘blood mining’ due to its connections to child labour and other human rights abuses.
Platinum mining produces hazardous toxic waste, which significantly harms surrounding communities.

Government policies in the Global North are narrowly focused on fast-tracking mining and extraction permits to boost supply. Therefore, in order to ensure the energy transition is climate-proof, material-efficient and socially just, there is a need for Critical Raw Materials (CRM) sourcing to be based on circular principles that ensure resource-efficiency.

Niu-Niu, a South American company founded in 2022, believe that today’s battery metal supply does not have to involve environmental destruction and child labour. Instead they focus on lithium, cobalt and platinum supply from a circular economy perspective.

Their approach tackles three main goals:

Minimising supply risks by using clean, traceable, and reliable sources.
Maximising metal recovery through recycling pre-sorted electronic waste like circuit boards, microprocessors, and lithium-ion batteries.
Ensuring clean management of e-waste by promoting transparency and environmental education around toxic waste management.

Using Artificial Intelligence, Niu-Niu identifies and sorts valuable metals from e-waste, which are then recycled into essential materials for electric vehicle production and renewable energy technology.

They also look beyond this generation and have a vision to implement these solutions through Latin America through education diplomacy. Through their education program Renicia el Ciclo, they have implemented an environmental education program in 55 institutions, raising awareness about e-waste and inspiring students for further climate action.

A more transformative approach to the green transition involves adopting circular economy practices to reduce resource demand and minimise waste. These practices shift the focus from merely improving resource exploitation efficiency to extending the lifespan of CRM (Critical Raw Material) products and components, thereby reducing the need for new resources.

While recycling is important, it should not stand alone. A synergistic strategy, combining multiple approaches, is essential to ensure that the energy transition is both socially just and respects planetary boundaries.

Companies also have a responsibility to inspire future generations by using their expertise for positive change. The days of companies compensating for environmental harm by offering superficial benefits, like building football fields, are over. Instead, businesses should follow the example of companies like Niu-Niu, which focuses on educating and inspiring young people as part of their contribution to the green transition.

Industries associated with the energy transition must take note. After all, if the energy transition does not benefit the planet and its people, what is the point?