“Unlocking Value: How Tech Giants are Mining Rare Earth Elements from Old Electronics”

Microsoft is leading the charge in the tech industry by launching a new initiative to recover rare earth elements and precious metals from old hard drives without using acids. This program, in collaboration with Western Digital, Critical Materials Recycling, and PedalPoint Recycling, aims to scale U.S. production of rare earth elements at a time when China, the world’s biggest supplier, has threatened to cut off exports amid a global trade war.

The pilot program has already processed 50,000 pounds of obsolete drives collected at Microsoft data centers, extracting crucial components like neodymium, praseodymium, and dysprosium, which are used in magnets for electric vehicles and wind turbines. Additionally, the initiative has recovered gold, copper, aluminum, and steel from the recycled materials.

Microsoft’s corporate vice president of Azure hardware and systems, Rani Borkar, emphasized that this initiative aligns with the company’s 2030 zero waste goal and is the right thing to do. With the rising demand for rare earth metals, which is growing at 9 percent annually, and the market projected to reach $16.3 billion by 2030, Microsoft’s efforts to recycle and recover these valuable materials are crucial for sustainability and resource conservation.

In addition to the rare earths recovery effort, Microsoft is also focused on keeping computer hardware out of landfills. The company recycled or reused almost 91 percent of its decommissioned servers and other data center hardware in 2024, meeting its waste reduction goals. Through Circular Centers located in various regions around the world, Microsoft is able to handle obsolete technology and keep valuable components in circulation.

Overall, Microsoft’s commitment to sustainability and waste reduction in the tech industry sets a positive example for other companies to follow. By recycling and recovering rare earth elements and precious metals from old electronics, Microsoft is not only reducing waste but also contributing to the circular economy and the clean energy transition.