Circular Economy Strategies’ Impact on Critical Raw Materials in Servers

Abstract

Critical Raw Materials (CRMs), materials with high economic importance and supply risk, are the key components of strategic sectors, including Information and Communications Technology (ICT). With foreseeable growth in CRMs demand, principles such as Circular Economy (CE) strategies are gaining attention as means to mitigate risks associated with CRMs. This study examines the effect each CE strategy has on CRMs in servers, via a case study of a Dutch telecommunications company. The study was conducted by collecting industry insights from 16 industry experts and performing a literature review.

Results show that out of 47 types of CRMs, at least 20 CRMs are contained in 4 sub-assemblies and 2 extension tools of a rack server. Among the sub-assemblies, the motherboard is found to contain the most diverse types of CRMs, while the HDD contains the largest amount of CRMs.

CE strategies were investigated in two ways, first by studying current strategies implemented by the company and its value chain partners, and by investigating advanced practices and strategies discussed in the literature. Results indicate that each CE strategy impacts the CRMs in sub-assemblies in different ways, while also having varied limitations in their potential. The result also shows that the current implementation of CE strategies does not always lead to the enhanced circularity of CRMs, as indicated in most of the CRMs being lost in current recycling practices. The degree of effect also differs depending on the strategy and sub-assembly. In the case of the motherboard, substantial potential to improve circularity was identified in the substitution method and advanced recycling strategy, with more CE strategy in need for Ba and P containing components. For HDDs, significant potential was observed in the functional substitution by SSDs and advanced HDD recycling technology. In addition, the strategies’ potential in mitigating the supply risk and environmental impact associated with CRMs was explored. While each strategy is seen to have the potential in reducing risk, its effectiveness depends on multiple factors and further case studies will be necessary to quantify it.

The results imply that enhancing the circularity of CRMs is a complex challenge where diverse interest from actors in the value chain is involved. For this reason, the study stresses the need for active collaboration among value chain partners and system-level support, to be able to design each CE strategy tailored for intended improvement in CRMs circularity. For the advancement of the topic, further studies are recommended, including the four goals of inventing secure ways for CRMs data sharing across the value chain, design for lifetime extension and CRMs recycling via collaboration between suppliers and downstream partners, finding economically viable business models for CRMs circularity, and assessing each CE strategy’s risk mitigation potential via specific case studies.