Closing the Loop, KIVI-jaarcongres 2017

“Closing the Loop”

Jan Tytgat

Umicore

KIVI-jaarcongres 2017, Wageningen 21 Nov. 2017

Closing the Loop, KIVI-jaarcongres 2017

Agenda

1

Umicore closed loop

approach

2

Creating a circular

economy – B2B vs B2C

3

Annex

2

Closing the Loop, KIVI-jaarcongres 2017

Who we are today

A global materials technology and recycling group

10,400 employees, 64 manufacturing sites on 5 continents, 2.6 bn € revenues*

One of three global

leaders in emission control

catalysts for light-duty and

heavy-duty vehicles and

for all fuel types

A leading supplier of key

materials for rechargeable

batteries used in portable

electronics and hybrid &

electric cars

The world’s leading

recycler of complex waste

streams containing

precious and other

valuable metals

3*2015, excluding metals

Closing the Loop, KIVI-jaarcongres 2017

Providing innovative solutions

across industries

Reliable

metals access

is crucial for

our high-tech

products

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Closing the Loop, KIVI-jaarcongres 2017

29 Metals and Materials in our portfolio

source: European Commission,

Critical Raw Materials for the EU, updated report July 2014 5

Closing the Loop, KIVI-jaarcongres 2017

MetalsMaterial

solutions

Application

know-how

Recycling

Chemistry

Material science

Metallurgy

“Closing the Loop” approach since 2001

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Closing the Loop, KIVI-jaarcongres 2017

Umicore position in recycling

SHORT/closed

LOOPRecycling services for

customer production

scrap and residues

LONG/open

LOOP

Unique technologies

for treating complex

residues and by-

products

Tailored solutions for industrial customers

Recycling directly integrated in a B2B

business model

High reliability, minimal losses

Typical for EoL consumer products &

complex residue streams

Depends on market supplies

How to secure collection at EoL & high

quality recycling? – at low metal prices?

Market driven

Impacted by

legislation

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Closing the Loop, KIVI-jaarcongres 2017

Umicore

e-catalyst

Jewellery

Umicore in product lifecyclesClosing the loop for precious metals bearing functional materials

L-O L-O S-C

S-C L-O

L-O ?

= short, closed loop (B2B)

= long, open loop (mainly B2C)L-O

S-C

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Closing the Loop, VIB seminar 15 Nov. 2016

Agenda

1

Umicore closed loop

approach

2

Creating a circular

economy – B2B vs B2C

3

Annex

9

Closing the Loop, VIB seminar 15 Nov. 2016

The urban mine - metal needs for selected products

today

Electro- & electronic devices: responsible for > 40% of world

mine production of Cu, Sn, Sb, In, Ru

4% Au & Ag, 20% Co & Pd in cell phones, PCs, laptops,

tablets

Cars: 60% of PGM-mine production (autocat); 160% of Pb-

mine production for car batteries

tomorrow

Renewable energies: wind REE-magnets, Cu

Photovoltaic Si, Ag, Cu, Se, Ga, In, Te, Cd, Ge

Fuel cells/H2 Electrolysis Pt, Ru, Ir

Electromobility: batteries Co, Ni, Li, …, FC, REE-magnets, Cu, electronics

LED-lightning Ga, In, REE, …, glass fibre cables Si, Ge, grid Cu, …

physical & chemical properties essential for high-tech functionality

EU highly dependant on metal imports

Clean energy needs a clean supply chain; consider total energy balance

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Closing the Loop, VIB seminar 15 Nov. 201611

Massive shift from geological

resources to anthropogenic “deposits”

% 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

• Electric & electronic equipment (EEE) Over 40% of world mine production of copper, tin, antimony, indium, ruthenium & rare earths are annually used in EEE

• 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 auto catalysts, increasing significance for electronics (“computer on wheels“) and light metals

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

• Clean energy technologies & other high tech applications will further accelerate demand for technology metals

Closing the Loop, KIVI-jaarcongres 2017

Circular Economy package of EU Commission

Source: EU-COM (2014)

398, Towards a circular

economy, 2.7.2014

“… where the value of products, materials and resources is maintained

in the economy for as long as possible, and the generation of waste

minimized… to develop a low carbon, resource efficient and competitive

economy”

Metals are the ideal candidate: “eternally” recyclable, no

downcycling, no material quality issues…

EC Communication 2015 “Closing the loop – An EU action plan for the Circular Economy

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Closing the Loop, VIB seminar 15 Nov. 2016

But certain conditions need to be met…Circular Economy from a metals perspective

1. A circle is only closed if materials physically find their way into new product lifecycles

ensure high quality recycling along the entire chain

2. Economic requirements to be solved – special challenge to close materials cycles for complex consumer products

ensure that revenues match costs for high quality recycling who pays for it?

• 3. Recycling cannot entirely fulfil metal needs but it can provide an important contribution

• Mining & recycling are complementary for supply

• Smart materials, product design & resource efficient use are key to optimise material demand

Circular economy = recovering materials comprehensively at product EoL, when ever and where ever this will take place

4. Metal cycles are complex and interdependent

system approach and consideration of whole value chain is crucial

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Closing the Loop, VIB seminar 15 Nov. 2016

material

solutionsPt / Rh / Ir / Au

Engineered

solutions

Used components

Secondary RM

Alloys

PGM Components

Special glass industry

PGM gauzes

Chemical industry

End-user markets

Glass industry

Pt, Rh,

Ir, Au

© 2015 Umicore

- Flat Screens\

- Technical glass

- Lens system

- Fertilizers

- Chemical Intermediates14

B2B facilitates to close the loop- example Umicore PGM products for chemical & glass industry

Closing the Loop, VIB seminar 15 Nov. 2016

B2C challenges – need for innovative business models – example recycling chain for consumer electronics

UseWEEE

CollectionMetal

RecyclingDismantling

Ag

Au

Cu

Pd

…

Electronics

Collection Pre-processing End-processing

Shredding

Sorting

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Product

Manufacturing

Product

Distribution

Direct impact No / indirect impact

How can a manufacturer access recycling materials?

Closing the Loop, VIB seminar 15 Nov. 2016

How to close the loop from a manufacturer’s

perspective?

16

Basic prerequisite: consider recyclability in product design

Comprehensively recycle production scrap & warranty returns by partnering

with a strong quality recycler

Consider using a toll refining service to get back the metals (metal accounts)

Create business models which provide direct access to your EoL products

leasing, deposit systems, …

A large quantity of EoL products in your hands / at your recycling service partner enables

comprehensive recycling (instead of EoL products spread over millions of private users)

EPR: strive for comprehensive collection, use of quality processes along the

chain (bear cost implications) and transparency of material flows to keep

metals within the system

Closing the Loop, VIB seminar 15 Nov. 2016

www.umicore.com

Thanks for your attention

Contact: jan.tytgat@umicore.com

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Closing the Loop, VIB seminar 15 Nov. 2016

Agenda

1

Umicore closed loop

approach

2

Creating a circular

economy – B2B vs B2C

3

Annex

18

Closing the Loop, VIB seminar 15 Nov. 2016

End-processing

Modern smelting-refining of e-scrap is clean tech

Mixed feedFinal metal

recovery

Economies of

scale

Organics

provide energyGlobal market

Complex

metallurgy

Environmentally-sound

treatment

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Closing the Loop, VIB seminar 15 Nov. 2016

Umicore’s integrated metals smelter & refinery

- Sophisticated facility for multi-metals recycling

Efficient recovery of 17 metals: Au, Ag, Pt, Pd, Rh, Ru, Ir, Cu, Pb, Ni, Sn, Bi, Se, Te, In, Sb, As

350 000 t/y raw materials – a wide range of complex precious metal bearing by-products from the smelting & mining industries, e-scrap and other recyclables

Specialized process for recycling of rechargeable batteries recovering Co, Ni, Cu & REE

Unique, innovative technology and applying world class environmental standards for high metal yields, high energy efficiency and low emissions

Umicore Precious Metals Refining plant in

Hoboken, Belgium

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Closing the Loop, VIB seminar 15 Nov. 2016

Ge and its recycling

By-products

from Zn-mining

& coal fly ashes

material

solutionsGe

Optical fibres

Solar Cells and LEDs

Infrared & optics

NASA Mars

Exploration Rovers

Spirit and Opportunity

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Closing the Loop, VIB seminar 15 Nov. 2016

Co applications and their recycling

material

solutionsCo, Ni

Cathode mat

Powders

Oxides

Salts

+ Re

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“The Circular Economy proposals are an

important start to begin capturing the

value of European metals. We now call

on MEPs and Member States to

introduce stronger commitments in crucial

areas, with harmonized implementation

across Europe”

Eurometaux

Closing the Loop, VIB seminar 15 Nov. 2016

EU Circular Economy Package

What’s in and what more is needed for NFM? (1)

Improved cooperation with Member States for better implementation and harmonization of EU waste legislation

Harmonized transposition & implementation across Member States is key to achieve a coherent circular economy

Stepping up enforcement of revised Waste Shipment Regulation (countering illegal flows)

Legislation is there but proper enforcement is needed and soon

Promotion of industry-led voluntary certification of treatment facilities for key waste/recyclate streams

Mandatory standards and certification scheme for proper treatment of WEEE in global equivalent conditions

Minimum EPR requirements

Further clarifications/guidelines needed (e.g. “real end-of-life costs of individual products or groups”?)

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Closing the Loop, VIB seminar 15 Nov. 2016

EU Circular Economy Package

What’s in and what more is needed for NFM? (2)

Measures to facilitate waste shipment across the EU, including electronic data exchange (and possibly other measures)

“Fast-track” transboundary shipment of waste/resources to pre-consented (certified) facilities

Improve exchange of information between manufacturers and recyclers on electronic products, consider eco-design criteria

Collaboration & coordination along the value chain – securing economic viability and economies of scale

Improved definitions on recycling and point of measurement

Harmonized interpretation, implementation and monitoring/reporting of recycling targets is key to obtain targets which are meaningful and accountable, supportive to steer towards a true circular economy

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