Cost-benefit Analysis of WEEE Recycling in Germany-Case Study of Mobile Phones and Smartphones

Scarcity of natural resources and supply chain risks represent one of today's most vital topics. This issue very much applies to the context of electrical and electronic equipment (EEE) sector as well, as its production requires a mixture of various different kinds of raw materials, metals and precious metals, partly classified as critical by the European Commission. Since the beginning of the 1990's, the global market of EEE continuously grew at a high rate, and it's expected to continue to grow, while the lifetime of these products reduces as a result of rapid technological innovations and changes in consumers' interaction with the products they buy. The paper analyzes the monetary value of precious and critical metals in selected electronic equipment sold during 2004-2014 in Germany and at global level, as well as the value of the metals stock which is not being put to use. The stocks of critical and precious metals inside mobile phones and smartphones are assessed on the basis of sales volumes. Initially a literature review on the definition of critical metals is being provided, followed by an analysis of the critical and precious metal stock content and monetary value for selected electrical and electronic equipment (EEE). Overall, for the selected EEE, a total stock of 5.6 thousand tonnes of critical and precious metals can be estimated, with a total monetary value of more than (sic) 558 million. However, the short life-cycle of these products combined with their inappropriate disposal leads to a major loss of these metals. Moreover, a cost benefit analysis of the end of life management of mobile phones and smartphones is being realized reaching the conclusion that the potential revenues from recycling these products can be quite significant. Furthermore, the issues and challenges in the German WEEE Management System are also being analyzed with a closer look at mobile phone and smartphone waste streams with the goal of identifying the potential of closing the resources loop.