“Revolutionizing Tech Supply Chains: How FedEx and Pyxera Global are Mining Discarded Electronics for Critical Minerals”
FedEx, Pyxera Global, and several other companies have joined forces to launch the Circular Supply Chain Coalition on May 22. The goal of this coalition is to boost the U.S. supply of critical minerals for new tech hardware by utilizing discarded consumer electronics.
Electronic goods require rare earth elements such as lithium, nickel, cobalt, manganese, graphite, aluminum, and copper. These minerals are essential for the functioning of batteries, chips, and circuits in various devices ranging from phones and laptops to wind turbines and electric vehicles. The global demand for critical minerals is expected to quadruple by 2040, leading to a rise in prices.
Despite the increasing demand for these minerals, the U.S. currently imports 80% of its supply, with China dominating the market and processing up to 90% of rare earth elements worldwide. To address this issue, the Department of Energy and the International Energy Agency have recommended sourcing critical minerals from used consumer products through a process known as “urban mining.”
Americans discard approximately 8 million tons of electronics each year, highlighting the potential for recycling and upcycling these materials to extract critical minerals. The Circular Supply Chain Coalition aims to bring together logistics companies and community enterprises to tap into this distributed supply.
The coalition’s vision includes establishing local hubs in cities like Phoenix, Atlanta, and Cleveland where electronics can be recycled, creating green jobs for underserved communities. By leveraging small businesses and nonprofits to process e-waste, the coalition hopes to develop a sustainable supply chain for critical minerals.
A pilot program conducted in Lebanon, Tennessee, involving FedEx, Pyxera Global, and Metabolic of Amsterdam, tested the concept of recycling electronics. Consumers were invited to mail in their used laptops and tablets, which were then collected, refurbished, and recycled by local organizations.
In addition to recycling electronics, the coalition is exploring other sustainable initiatives such as collecting marine plastic waste for building materials. By engaging with customers and partners, FedEx aims to play a role in reducing carbon emissions and promoting circular logistics practices.
The Circular Supply Chain Coalition’s core partners include Metabolic, the Sustain Our Future Foundation, and Circular Consulting, with additional partners such as consultancy WSP, FirstMile, and the Virginia Commonwealth University Supply Chain Lab. The coalition is actively seeking new partners, and major tech companies have already expressed interest in joining the initiative.
Overall, the Circular Supply Chain Coalition represents a collaborative effort to address the growing demand for critical minerals in a sustainable and environmentally friendly manner. By leveraging existing resources and partnerships, the coalition aims to create a circular supply chain that benefits both businesses and communities.