The Significance of Urban Mine Development for Quality Improvement in Rare Earth Motor Recycling
While the earth's natural resources are becoming increasingly depleted, the unique "resource" of urban waste continues to grow, and cities have become the largest resource-rich places in human society. Resources extracted from the ground are being brought together in cities in the form of a wide variety of manufactured goods, and the residuals that exist at the end of the consumption process have turned the cities into another type of "mine". According to the data released by the U.S. Geological Survey (USGS) in 2023, China's rare earth reserves accounted for 35.2% of the world, mining accounted for 58% of the world, and rare earth consumption accounted for 65% of the world, ranking first in the world in all three aspects. China is the world's largest producer, exporter, and applicator of rare earths, occupying a dominant position. A large number of rare earth products have infiltrated into every aspect of industrial applications. Data from the Huajing Industrial Research Institute show that rare earth permanent magnet materials accounted for more than 42% of China's rare earth consumption in 2023, with the vast majority of these materials applied to new energy vehicles and electric two-wheelers.
Municipal mines have various types, abundant sources, extensive reserves, and high grades that cannot be compared with natural mines. According to the United Nations "2020 Global E-waste Detection" report, the total global e-waste reached 53.6 million tons in 2019, with 82.6% being discarded or incinerated without recycling. It is projected that global e-waste in 2030 will reach 74.7 million tons. The waste rare earth motors in new energy vehicles and electric two-wheeled vehicles (including electric motorcycles, electric bicycles, electric scooters) contain high-purity raw materials that are rich in ore, grade, and rare earth products comparable to rare earths. They represent a genuine rare earth city mines. Rare earths, as a non-renewable resource, hold significant strategic importance for the effective recovery and recycling of global economic development.
According to EVTank, a market research organization, the overall global shipment of electric two-wheelers reached 67.4 million units in 2023. China accounted for 81.9% of the global sales of electric two-wheelers, Europe for 9.2%, and other regions for 8.9%. By the end of 2023, China's electric two-wheeled vehicle ownership reached about 400 million, with developing countries like Vietnam, India, and Indonesia also having significant electric two-wheeled vehicle ownership. The global new energy vehicles have experienced a in the past two years, with sales reaching about 10 million units in 2022 and 14.653 million units in 2023. It is expected that global sales will exceed 20 million units in 2024, with China contributing 60% to the global sales. The global new energy vehicle ownership in 2023 has reached about 400 million units, with 40 million units being new energy vehicles. It is projected to grow at an average annual rate of 23% between 2023 and 2035, reaching 245 million units in 2030 and further increasing to 505 million units in 2035. The growth momentum is rapid. According to the European Automobile Manufacturers' Association (EAMA), in 2023, 3.009 million new energy passenger cars were registered in 31 European countries, showing a year-on-year increase of 16.2%, with a new energy vehicle penetration rate of 23.4%. The Alliance for Automotive Innovation (AAI) reported that the sales of U.S. new energy light-duty vehicles in the first three quarters of 2023 amounted to 1.038 million units, a year-on-year increase of 59%. The Starting Point Research Institute (SPIR) data predicts that the global average penetration rate of new energy vehicles will reach 56.2% in 2030, with China's new energy vehicle penetration rate reaching 78%, Europe's 70%, the U.S.'s 52%, and other countries' 30%. There are cities with urban mines that will not be exhausted, and the development of rare earth urban mines is of long-term significance for optimizing the ecological environment, obtaining global rare earth pricing power, and promoting the high-quality development of the global economy.
Globally, the recycling market for used rare earth motors has significant potential. According to market research organization SNE Research, the number of new energy vehicles scrapped worldwide is projected to increase from 560,000 in 2025 to 4.11 million in 2030, 17.84 million in 2035, and 42.77 million in 2040.
(1) Accelerating the transition to green, circular, and low-carbon.
Traditional resource utilization involves a one-way flow of resources from the production process to the consumption link and eventually to waste. The theory of circular economy introduces a new approach to resource utilization by converting this one-way flow into a two-way cycle. Urban mine development challenges the traditional method of resource acquisition and represents a typical two-way cycle. By recycling waste, it not only reduces waste and increases resources but also generates new opportunities for urban development through a process of reduction and enhancement.
Natural mines produce a significant amount of waste due to limited resources and environmental pressure. In contrast, the development of fast-growing, high-purity, low-cost urban mines not only eliminates the need for exploration, mining, and land restoration but also significantly reduces waste generation. This shift changes the traditional linear growth model of "mining-smelting-manufacturing-waste" to a circular development model of "resources-products-waste-renewable resources". The increasing volume of scrapped electric cars and electric two-wheeled vehicles annually contributes to the growth of rare earth urban mine reserves. Recycling these rare earth mines aligns with green development principles, such as resource conservation, reduced energy consumption, and environmental protection.
(2) Recycling to conserve strategic resources
How to realize the recycling of strategic mineral resources has a bearing on the long-term development of the global economy. The grade of metals, rare precious metals, and rare earth resources in urban mines is dozens or even hundreds of times higher than that of natural ores. The rare earth products obtained from urban mines save the steps of mining, beneficiation, smelting, and separation of raw rare earth ores. The traditional smelting process of rare earths requires high skills and costs. Developing urban mines to extract rare earths and rare earth magnetic steel products from scrapped new energy vehicles and electric two-wheelers at low costs is strategically important for protecting global rare earth mine resources and maintaining international economic development.
An average electric two-wheeled car motor requires 0.4-2kg of rare earth magnets and 0.1-0.6kg of praseodymium elements. China scraps over 60 million electric two-wheeled vehicles annually, from which approximately 25,000 tons of rare earth magnets can be recovered, valued at about 10 billion yuan. The recovery also includes 7,000 tons of rare earth praseodymium and neodymium elements, valued at 2.66 billion yuan (based on the price of praseodymium-neodymium oxide at 38 million yuan/ton as of July 1, 2024). Each new energy vehicle drive motor typically needs around 25kg of rare earth magnets, 6.25kg of praseodymium and neodymium, and 0.5kg of dysprosium. The 560,000 new energy vehicles projected to be decommissioned in 2025 will contain 12,500 tons of rare earth magnets, 3,500 tons of praseodymium and neodymium, valued at 1.33 billion yuan, and 250 tons of dysprosium, valued at 467.5 million yuan (based on the price of dysprosium oxide at 1.87 million yuan as of July 1, 2024). This represents the largest amount of rare earth magnets globally. In 2023, China set a total rare earth mining control target of 255,000 tons, with the potential to dismantle and recover 30-40% of the rare earth elements from electric two-wheelers and new energy vehicles, equivalent to the current mining volume of China's rare earth mines.
It is expected that the 42.77 million new energy vehicles scrapped in 2040 will contain 1.07 million tons of rare earth magnets, 267,000 tons of praseodymium-neodymium elements, and 21,400 tons of dysprosium elements. This amount is significantly higher than the total rare earth products isolated from the mining volume of global rare earth mines. This development will comprehensively achieve the goal of conserving non-renewable strategic resources.
(1) Enhancing people's health and well-being
The nature-friendly city is a model of low-carbon, ecological conservation. However, the reality of garbage surrounding the city and the disposal of used electric cars, which contain harmful substances to the environment and human body, remains troubling. This issue affects people's quality of life. Urban mine development not only eliminates the hazards of waste to the environment and human body but also ensures the health and safety of urban ecology. Furthermore, it accelerates the realization of harmonious coexistence between man and nature.
2.Dilemmas Facing Urban Mine Development
The greening and decarbonization of economic and social development are key aspects of high-quality development. China has formulated numerous policies and measures for the development of urban mines. It has also enhanced the management of municipal solid waste and new pollutants comprehensively and through various channels by organizing urban mine fairs and other events. China has promoted the widespread recycling of rare-earth urban mines, as well as their quantitative reduction and resource utilization. However, there are still many challenges to implementing a comprehensive conservation strategy and promoting the economical and intensive utilization of resources.
(1) Insufficient attention to urban mining development
Conventional mining is carried out by mining companies in specific mining areas, and the distribution of resources in urban mines is markedly decentralized. Inertia has led most companies to focus on the dwindling number of natural mines and to invest in costly research and development of new technologies. Most of the world's usable mineral resources are no longer underground but are piled up on the surface in the form of "automobile graves, "steel graves, "electronic garbage, and other wastes. Urban mines and traditional mines are very different forms of mining. Mining is no longer about underground mine shafts and excavation, but about crushing waste products, classifying, and extracting metals, plastics, and other recyclable materials. The new miners only need to classify the garbage to complete the initial collection of resources. An urban mine is within reach, but recognizing the actual value of these mines and the significance of mining can lead to comprehensive utilization by enterprises. However, not many enterprises recognize the value and significance of mining these urban mines and realizing comprehensive utilization. Focusing on urban mine development should be the ideological basis for the high-quality development of the world's economy.
● Inadequate transshipment and disposal networks
Mining cities mine without government authorization to define the mining scope and duration. Consequently, the collection, classification, transportation, and disposal of waste directly impact the stability of the enterprise's raw material supply. Inadequate dismantling technology leads to businesses neglecting the recycling of waste motor products. Some citizens resort to selling waste electric bicycles to mobile vendors due to the lack of formal recycling channels, resulting in and private buyers becoming the primary collectors. Moreover, the recycling of waste electrical appliances, seven types of waste, and dismantling and recycling of scrap cars require appropriate qualifications due to their high reliance on new technologies. It is evident that increasing public awareness, enhancing the recycling system, and improving enterprise standardization are crucial for addressing the issue of scattered recycling entities.
3.Innovative Ideas for Urban Mine Development
The value of urban mine development depends on both the current stock of waste and the future increase and growth rate. By the end of 2021, there will be 17 cities in the world with a population of more than 10 million, 113 cities in China with a population of more than 1 million. The stock of new-energy vehicles and the amount of scrapped vehicles will grow simultaneously. Therefore, it is essential to continue exploring and innovating to strengthen the development of urban mines and promote high-quality development.
● Policy support and scientific management
China, as a consumer of new energy vehicles and electric two-wheelers, realizes the goal of urban mine development to serve society, industry, and mankind. This achievement is inseparable from national-level policy support, a comprehensive system of laws and regulations, and the necessity of scientific management. In 1976, the United States developed and enacted the Solid Waste Disposal Act, and in 1989, California passed the Comprehensive Waste Management Ordinance. Through stringent policy and regulatory measures, the U.S. renewable energy industry's output value has approached that of the automotive industry. Drawing lessons from others' experiences and adopting advanced management concepts can boost enterprise motivation. Favorable policies can incentivize technological innovation, the use of new materials in designing environmentally friendly products, and ultimately achieve source reduction. It is crucial to intensify public awareness campaigns, promote frugal consumption practices, and improve waste recycling rates. Additionally, increasing investment in waste disposal research and technology development, encouraging private and foreign investments, and implementing various measures can accelerate the development of urban mines, a vital component of sustainable development.
(2) The green development concept guides the development of new technologies.
The green development approach represents a significant shift in the development paradigm, where resources, environmental protection, and other constraints serve as the innovative driving forces for urban mining. It also views rare, difficult-to-refine, and high-value materials as both opportunities and challenges. Enterprises' independent innovation is the key to achieving high-quality development, as they embrace the innovation concept of limited resources and unlimited recycling. By addressing recycling challenges and leveraging technological, equipment, and process innovations, enterprises can unlock the potential of rare earth elements and refined remanufacturing. This approach breathes new life into waste materials through multiple cycles of reuse, fostering scientific and technological advancements in the industry and bolstering core competitiveness.
(3) Full life cycle development, complete industry chain
The development of urban mines is closely related to the life cycle of waste. Products in the industrial civilization cannot avoid the fate of "from cradle to grave, completing the life cycle from mining resources, product production, sales, use, and being eliminated as waste products. In the period of ecological civilization, green recycling development can turn decay into a miraculous transformation. Through the material flow analysis method of internal and external input-material cycle-material output, the flow direction of waste can be altered. The waste will be transferred from the "grave" to the "cradle" and realize the "cradle-to-grave" fate. "From the cradle to the cradle multiple rebirths. Through the "Internet + recycling" platform, the effective connection of the three major links of waste production, waste collection, and waste recycling can be achieved. By developing the entire life cycle of green design, green production, green sales, green recycling, and treatment, it realizes the innovation of the entire industrial chain, including sorting and dismantling, pre-treatment and processing, material recycling, and remanufacturing.
(4) Playing the role of a model leader
The development of rare earth urban mines can promote the de-capacity and green development of the entire economy in various aspects, such as environmental protection and resource reuse. It can also advance high-quality development through supply-side structural reform. Demonstrating and leading positively holds significant importance in fostering the networkization of the recycling system, rationalization of the industrial chain, scaling up of resource utilization, leading technology and equipment, sharing of infrastructure, centralization of environmental protection treatment, and standardization of operation and management. Leading enterprises can steer the entire urban mining industry towards high-end, intelligent, resource-safe, clean, and efficient high-quality practices.
(This article has been completed by the Expert Group of Sichuan Yuanlai Shun New Rare Earth Materials Co., Ltd., Zeng Zheng, and Song Donghui, citing the article "How to Make Urban Mine Development High-Quality by Zhu Yan and Li Xuemei from the School of Environment at Renmin University of China.)