A renewable energy future hinges on the materials recovery

Let’s be clear, without a strong materials recovery sector the Renewable Energy Transition is dead in the water. And without the RET, our society faces a bleak future. It sounds dramatic, but it’s the unvarnished truth.

Electrification is the key to cutting greenhouse emissions, and the bedrock of electrification is copper. This single element underpins our energy-intensive civilisation. Without a reliable copper supply, the society we rely on simply can’t function. It’s the very lifeblood of our modern world.

Last year the International Energy Agency’s “Global Critical Minerals Outlook, 2024” dropped a bombshell;  a potential 30% copper supply shortfall by 2040. Our demand for copper has exploded, from 4700 mt in 1960 to 26549 mt in 2023, and over the past 10 years demand has exceeded supply, creating a structural deficit depleting global reserves.

Currently, resource recovery provides over 30% of global refined copper. To meet the renewable energy transition goals, we need to at least double this secondary supply. This is a massive challenge.

Research undertaken by the world leading Fraunhofer Institute highlights the difficulty. Their decades-long work shows over 70% of collected material weight doesn’t reach the refinery, with another 3% lost during refining. Combined with declining ore quality, rising extraction costs, and finite resources, we face a serious problem.

A global push for Extended Producer Responsibility and local Product Stewardship schemes is part of the answer, alongside shifts in consumption, material substitution, and smarter product design. We’re already seeing large corporations take steps to vertically integrate into recycling to secure their critical mineral supply chains. These factors underscore the importance of solar panel reuse. In Australia, our research shows decommissioned modules average just 8 years old – a significant opportunity for reuse.

This isn’t about one simple fix; it’s a system-wide change for the better.

That’s why the Smart Energy Council champions a thriving materials recovery ecosystem and a National, Mandatory Stewardship Scheme. Before a national scheme, we need a national pilot program. This will inform logistics costs and, crucially, trigger the establishment of the entire materials recovery chain; collection, recyclers, and downstream industries. These specialist ecosystems take many years to establish, and a cohesive national plan is important in attracting long term investment.

The work we do in materials recovery directly shapes our collective future. It’s about securing the renewable energy transition and building a sustainable world. The role of Stewardship has never been so important.

Darren Johannesen
Executive General Manager – Sustainability
Smart Energy Council