Critical raw materials – the industry perspective with ... · Critical raw materials (EU Commission) materials for which a threat to supply could involve harm to the national economy,

Christian Hagelüken, & Egbert Lox, Umicore, KU Leuven Emeritiforum, Leuven, 31.01.2013

Critical raw materials – the industry perspective with focus on recycling

KU Leuven EmeritiforumFaculty Club

31.01.2013, Leuven, Belgium

Christian Hagelüken & Egbert Lox, Umicore


Introduction to Umicore

Significance of critical raw materials/technology metals

„Urban Mining” – recycling opportunities & challenges

Conclusions

3Christian Hagelüken, & Egbert Lox, Umicore, KU Leuven Emeritiforum, Leuven, 31.01.2013

Umicore’s history: the roots

1853 Asturienne des Mines

1805 Vieille-Montagne

1928

1908 Soc. Gén. Métallurgique de Hoboken

1887

1919 Société Générale de Minerais

1959 Mechim

1906 Union Minière du Haut-Katanga

1981

1901 ACEC

1919 SIBEKA

1873 Degussa (DM)

1800 1850 1900 1950 2000

1985

1989

1985

Union Minière

1990

1970

Usine de Désargentation

Compagnie des Métaux d’Overpelt

1981

1989

2003DMC² PMG

2010

1919

2001

2007 Nyrstar

2005 Cumerio

2005 Traxys

MHO

UM

1989

(Degussa)


Umicore’s transformation:A change in the business profile

Capital intensivemetal refiner

R&D intensivematerials technology

company

1.036

1.725

2.1242.000

2.290

1.919 1.9101.902

1.358

1.723

9,3%

2,5%3,2%

4,8%5,7% 5,4% 5,8%

7,0% 6,9%6,0%

6,8%

8,6%

10,2%

8.0%7,2%

11,1%8,7% 8,4%

14.6%

10.5%

0

500

1.000

1.500

2.000

2.500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

DiscontinuedUmicore

Core Umicore

Capex /revenues

R&D /revenues

Christian Hagelüken, & Egbert Lox, Umicore, KU Leuven Emeritiforum, Leuven, 31.01.2013 5

Umicore – a materials technology companyour business approach

• We transform metals into hi-tech materials

• We use application know-how to create tailor-made solutions in close collaboration with our customers

• We close the loop and secure supply by recycling production scrap and end-of-life materials

materialsolutionsMetals

Applicationknow-how

Recycling

Materialsolutions

ChemistryMaterial science

Metallurgy

14,600 people in 79 industrial sites worldwide, turnover € 2.3 billion excl. metal


Our elementsUmicore’s products and services cover 26 different metals and materials


Key megatrends for Umicore

· More stringent emission control

· Resource scarcity

· Renewable energy

· Electrification of the automobile

More stringent emission control

Resource scarcity Renewable energy

Electrification of the automobile






Conclusions


Source: Achzet et al., Materials critical to theenergy industry, Augsburg, 2011

Booming product sales & increasingfunctionality boost demand for (technology) metals

Drivers:• growing population (Asia!)• growing wealth• technology development & product

performance

0200400600800

100012001400160018002000

199719981999200020012002200320042005200620072008200920102011

Annual global sales of mobile phones Source: after Gartner statistics (www.gartner.com)

Million units

300170

470SmartPhones

forecast

Accumulated global mobile phone sales until 2010 ~ 10 billion unitscontaining in total 2500 t Ag, 240 t Au, 90 t Pd, 38,000 t Co, 90,000 t Cu, …


From waste to secondary resourcesProducts, infrastructure and residues form huge urban mine

• EEE Over 40% of world mine production of copper, tin, antimony, indium, ruthenium & rare earths are annually used

• Mobile phones & computeraccount for 4% world mine production of gold and silver and for 20% of palladium & cobalt.

• Cars> 60% of PGM mine production goes into autocatalysts increasing significance for electronics (“computer on wheels“)

• In the last 30 years we extracted > 80% of the REE, PGM, Ga, In, … that have ever been mined

• Massive shift from geological to anthropogenic deposits “URBAN MINE” with large amounts of technology metals

% mined in 1980-2010

% mined in 1900-1980

Mine production since 1980 / since 1900

0%10%20%30%40%50%60%70%80%90%

100%

Re Ga In Ru Pd Rh Ir REE Si Pt Ta Li Se Ni Co Ge Cu Bi Ag Au

% mined in 1980-2010

% mined in 1900-1980

Composition of mobile phones

mobile phone substance (source Nokia)

Composition of mobile phones

mobile phone substance (source Nokia)


Much more technology metals mined in the last 3 decades than in the entire history of mankind

% mined in 1980-2010

% mined in 1900-1980

Mine production since 1980 / since 1900

0%10%20%30%40%50%60%70%80%90%

100%

Re Ga In Ru Pd Rh Ir REE Si Pt Ta Li Se Ni Co Ge Cu Bi Ag Au

% mined in 1980-2010

% mined in 1900-1980

REE = Rare Earth Elements

Many of these still sitting in our products and infrastructurehuge anthropogenic „ore deposit“ for current & future exploitation


Efficient production and use of energy will further boost demand for technology metals

Fuel CellsLight Emitting Diodes (LED)

Photovoltaic (solar cells) Electric vehicles & batteriesGermaniumGalliumSeleniumIndiumSilver

LithiumCobaltNickel Rare Earth ElementsCopper

GalliumIndiumGermaniumSilver

Platinum IridiumCobalt


Critical raw materials (EU Commission)materials for which a threat to supply could involve harm to the national economy, and for which the risk is higher than for most other raw materials in the coming 10 years

minor metal

Source: Critical Raw Materials for the EU – European Commission Enterprise & Industry, July 2010

precious metal


Potential metal scarcity ?

Absolute= resource depletion → not in near future, but:

Natural resource base degrades continuously (ore grades, mining conditions) → increasing costs, energy & water demand, environmental burden

Temporary = mismatch demand supply → ongoing

• Sudden demand increase (new applications, market surges, speculative, …) • Time lag & investment risk for new mines and smelters • Trade barriers, political unrest, war, natural disasters, …• Special vulnerability in case of concentrated supply (deposits, mining companies)

Structural= supply constraints from “coupled production” → ongoing

• typical for many technology metals• Supply of „minor metals“ (In, Bi, Se, Te …Rh, Ru, Ir, … ) depends on

mining of „major metals“ (Ni, Cu, Zn, Pb, Pt, …)


1 Price explosion by ITO boom for LCDs (2003-2006). Increased primary supply & recycling of production scrap drove prices down again (amplified by & economic crises)

Temporary & structural scarcity

Temporary scarcity → price volatilitye.g. LCD impact on indium prices1

PGMPGM

Structural scarcity:supply constraints by coupled production (→ price inelastic)

2 Increased demand can only be met if demand for carrier metals rises accordingly → places an absolute cap on availability.

Source: Hagelüken/Meskers (2010), in: Linkages of sustainability,

Temporary scarcity:


Substitution vs Recycling system approach is needed

Substitution:• No sustainable solution if substitutes

are from same metal family → problem shifting

• Difficult for hi-tech applications based on specific material properties

• Can lead to supply constraints& price surges for substitute

• Consider impact of substitute on recyclability

Not competing but complementary approaches, set the right priorities:• Recycling potential sometimes easier to realise than substitution (e.g. PGM in autocat)• Focus on substitution of dissipative applications of critical metals (e.g. Ag in RFID)• Look for substitutes with abundant availability

Source: Hagelüken/Meskers (2010), in: Linkages of sustainability,





Conclusions


Consensus on benefits of a circular economy mining & recycling are complimentary to secure metal supply for infrastructure & products

Reduce metal losses and boost recycling along all steps of the lifecycle

Securing access to scarce resourcesReducing impact on energy/climate, biosphere & water resourcesInducing innovation & creating jobs

Residues

Residues

Residues

Residues

Historic wastes (tailings, landfills)

Dissipation

Residues

Residues

Residues

Residues

Historic wastes (tailings, landfills)

Dissipation

End-of-LifeProductmanufacture

Use

Natural resources

Metals, alloys& compounds

New scrap

Raw materials production

Recyclingfrom

industrial materials

from Concentrates

& ores

productreuse


Source: UNEP (2011) Recycling Rates of Metals

Still far away from closing the loop for most technology metals

End-of-Life recycling rates for metals in metallic applications

WEEE:precious metal recycling rates below 15%

technical & non-technical innovation is crucial for success


Urban mining “deposits”can be much richer than primary mining ores Primary mining

• ~ 5 g/t Au in ore• Similar for PGMs

Urban mining• 200 g/t Au, 80 g/t Pd & Cu, Sn, Sb, …

in PC motherboards• 300 g/t Au, 100 g/t Pd … in cell phones• 2,000 g/t PGM in automotive catalysts

factor 40& more

Challenge : how to accumulate millions of discarded EoL product into „urban mines” of a reasonable (= economically viable) size

Low grade, high volume, fixed location High grade, millions of units, global dissemination


Recycling needs a chain, not a single process- system approach is crucial

Collection10,000’s

Prepro-cessing

1000‘s

100‘s

Example recycling of WEEERecovery of technology metals

from circuit boards

3

Number of actors in Europe

Dismantling

Total efficiency is determined by weakest step in the chain Make sure that critical fractions reach these plants

Smelting & refining of technology metals (metallurgy)

Example: 30% x 90% x 60% x 95% = 15%

products

components/fractions

metals Inve

stm

ent n

eeds


Bottle glass

Green glassWhite glassBrown glass

Steel scrap

+

Circuit boards Autocatalysts

• “Mono-substance” materials without hazards• Trace elements remain part of alloys/glass

Recycling focus on mass & costs

• ”Poly-substance” materials, incl. hazardouselements

• Complex components as part of complex products

Focus on trace elements & value

Technology metals need smart recycling - traditional mass focussed recycling does not fit

PM & specialty metals PGMs


Multi-metal recycling with modern technologyHigh tech & economies of scale thermodynamic limits exist

• Recovery of 20 metals from WEEE, catalysts, batteries, smelter by-products etc. Au, Ag, Pt, Pd, Rh, Ru, Ir, Cu, Pb, Ni, Sn, Bi, Se, Te, Sb, As, In (from universal process).Co, REE, (Li); Ga (from specialised processes)

• Value of precious metals enables co-recovery of specialty metals (‘paying metals’)• High energy efficiency by smart mix of materials and sophisticated technology• High metal yields, minimal emissions & final waste

Umicore‘s integrated smelter-refinery in Hoboken/AntwerpTreatment of 350 000 t/a

ISO 14001 & 9001, OHSAS 18001

Collection Pre-processing

Dis-mantling

Materialsrecovery


Business Group Recycling Business unit Jewellery & Industrial Metals

• Provides gold and other precious metals containing products to the jewellery sector and for industrial applications

• Closed loop offering for precious metals products, refining and related supply services

• Multi-regional business concept, strong in Europe and expanding worldwide


Umicore BatteryRecycling Plant

Special process for recycling of cobalt, copper, nickel, generation of REE (& Lithium) concentrates

Inauguration Sept. 2011

Capacity 7000 t/a


From: Disney/Pixar www.wall-e.com

Metal recycling from complex products- technical* & non-technical** challenges to overcome

*Accessibility of relevant components/materials- Electronics in cars, REE magnets in electric motors, …

„Design for Disassembly“, mechanical processing, „Pre-shredder“-technology

*Thermodynamic limits & difficult substance combinationsfor „trace elements“

- Rare Earths, Gallium/Germanium, Lithium, Tantalum, …„Design for Recycling,“ fundamental metallurgical research, pilot plants

**Severe deficits in closing the loop for consumer goods- Electronics, cars, batteries, lamps, …

better collection, tracing & tracking of material flows, prevention of dubious exports, creating transparency, economic incentives, …

Complex products require a systemic solution & interdisciplinary approaches (Product design, mechanical processing, metallurgy, economics, ecology, social sciences)


Dismantling &pre-processingCollection Smelting &

refining

Deficits in closing the loop for consumer goods- relevant materials don‘t reach best suited processes

Collect more & better• Legislative support & ambitious targets• Awareness & infrastructure• New business models (leasing, deposit systems …)• Better data (inventory of the urban mine)• Number and type of collection categories, interplay logistics recycling technology

Feed into & keep within appropriate recycling channels• Measure & monitor global product/material flows down to final process• Smart tracking & tracing technology to prevent illegal exports• More transparency & combined stakeholder responsibility along chain• Process certification to ensure use of high quality processes

More focus on critical/technology metals than on mass only

Dismantling &pre-processingCollection Smelting &

refining






Conclusions


Metallurgy

Mechanical processing

Costs &revenuesCollection

& logistics

Product design &business models

Consumer-behaviour

Material perspective

Product perspective

Recycling success factors

Recycling requirements 1. Technical recyclability as

basic requirement2. Accessibility of relevant

component3. Economic viability

intrinsically or externally created

4. Completeness of collection business models, legislation, infrastructure

5. Channelling & keeping within recycling chain

6. Technical-organisational set-up of chain

7. Sufficient recycling capacity


Research & developmentKey figures

Research & development headcount• 889 people currently

of which 236 in associates

Patents• 569 patent families• 215 Filings the last 5 years


Research & development Locations

Group R&Denergy materials

catalysts

recycling

performance materials energy materials

R&D in the BU’s

Group R&D


External Science & TechnologyOverview of partners – academia & RTO’s (non-exhaustive)


The European Institute of Innovation and Technology

• Increase sustainable growth and competitiveness by reinforcing the innovation capacity of the EU

• Interaction in the knowledge triangle: education – research – industry

• Entrepreneurship is the keyword

• Towards an EIT labelledmaster or PhD diplome

Higher Education

Research & Technology

Industry & SMEs


Knowledge and Innovation Community (KIC)

• The objectives of the KIC are to:• put the innovation web into practice,• create new jobs,• educate and develop entrepreneurs, • while addressing current societal challenges.• Each KIC is a legal entity consisting of several innovation hotspots

(co-location centres) and must become self-sustainable.• Three KICs are currently running on:

• climate change• information and communication technologies• sustainable energy

• Next potential KICs (start in 2014):• Healthy living and active ageing• Food• Raw Materials


Thank you !

Contact:[email protected]@umicore.comwww.umicore.com;www.preciousmetals.umicore.com

For background information:Hagelüken, C., C.E.M. Meskers: Complex lifecycles of precious and special metals, in: Graedel, T. , E. van der Voet (eds): Linkages of Sustainability. Strüngmann Forum Report, vol. 4. Cambridge, MA: MIT Press, 2010

Documents

Critical raw materials – the industry perspective with ... · Critical raw materials (EU Commission) materials for which a threat to supply could involve harm to the national economy,