The influence of market factors on the potential environmental benefits of the recycling of rare earth elements

After the rare earth element (REE) crisis in 2011, companies invested in new supply routes of REEs, such as the recycling from end-of-life fluorescent lamps. Although recycling is in the current market situation not economically profitable anymore, it does fit in a strategy towards a low-carbon and a circular economy, for example to mitigate the supply risk of REEs. However, is recycling of REEs indeed environmentally beneficial? Should their recycling therefore be subsidized? This is assessed with a Consequential Life Cycle Assessment (CLCA). The results show that the answer to this question strongly depends on the market situation of the REEs, and the applications in which they are used. At the time that the recycling process was operating—where fluorescent lamps could still displace halogen lamps and there was sufficient demand for the REE europium and yttrium—environmental benefits could be achieved by increasing the recovery of REEs from end-of-life fluorescent lamps. The results of this study can be used to increase the understanding on the type of market interactions that could be considered in the decision-making processes regarding the supply and recycling of raw materials—especially materials that are often produced as by-products, such as many critical raw materials.