Accelerating the circular transition by driving collaborative action along value chains to provide high-quality, low-carbon secondary materials
Unlocking circularity in critical material value chains
Aluminum, copper, and other critical materials are essential for the transition to net zero. Yet, today’s recovery systems remain highly inefficient, preventing these critical materials from reaching their full circular potential.
While 75% of all aluminum ever produced is still in use[1], 71% of mixed aluminum scrap is downcycled[2]—limiting its reuse in high-performance applications like electric vehicles, advanced electronics, and green infrastructure. In the case of copper, roughly 95% of used material is theoretically recyclable, but only 40% is actually recovered at end-of-life, due to poor scrap quality and fragmented processing systems[3]. Rare earth elements face an even starker gap: despite their vital role in clean technologies, less than 1% of REEs from end-of-life products are currently recycled[4].
These inefficiencies stem from disjointed supply chains, weak demand signals, limited investment in advanced sorting infrastructure, and misaligned incentives across sectors. Without coordinated intervention, valuable materials will continue to be underutilized, reinforcing linear production models that are carbon-intensive, wasteful, and unsustainable.
Footnotes:
[1] International Aluminium Institute, link
[2] McKinsey
[3] Gloser, S., Soulier, M., & Tercero Espinoza, L. (2013). Dynamic analysis of global copper flows. Global stocks, postconsumer material flows, recycling indicators, and uncertainty evaluation. Environmental Science & Technology, 47(12), 6564–6572. https://doi.org/10.1021/es400069b
[4] UNEP UNEP International Resource Panel. (2011). Recycling Rates of Metals: A Status Report (Graedel et al.) Also cited in: Reck, B. K., & Graedel, T. E. (2012). Challenges in metal recycling. Science, 337(6095), 690–695.
Driving decarbonization, resilience and value with circular material supply
High-quality recycled materials offer a critical opportunity to reduce emissions (e.g., recycled aluminum can cut emissions by up to 95% compared to primary aluminum), conserve resources, and build more resilient supply chains.
However, circular procurement at scale requires systemic coordination. The lack of infrastructure for alloy-level sorting, inconsistent scrap quality, and siloed action across the value chain all present major barriers. Overcoming these challenges requires not only technological innovation but also cross-sector collaboration, pooled purchasing power, and shared investment in scalable pilots.
The Critical Materials Collective
Launched by the World Business Council for Sustainable Development (WBCSD), the Critical Materials Collective is a cross-value chain action initiative to scale high-quality, low-carbon secondary materials—beginning with aluminum and expanding to other critical materials such as copper and rare earths.
The Critical Materials Collective is designed to:
• Drive public-private action across industries and regions on circularity to create impact on climate, nature, and social equity.
• Aggregate demand for circular solutions and pool purchasing power
• Develop and launch real-world pilots that can be replicated and scaled
Through these efforts, the Collective aims to reduce downcycling, improve recycling efficiency, and expand access to secondary materials that meet the performance and sustainability requirements of the 21st century.
Material-Specific Regional Pilots and Expansion
The Collective prioritizes pilot initiatives that are anchored in a specific material, region, and clearly defined problem or opportunity.
The first pilot aims to improve recycled aluminum sorting through advanced technologies and will serve as the foundation for a “Critical Materials Circularity Playbook”, capturing lessons that can be applied to future initiatives.
Additional pilots under exploration include an India-based initiative focused on leveraging end-of-life vehicles (ELVs) as a feedstock, and a separate opportunity targeting rare earth recovery from data centers.
Circularity can only scale when quality is preserved, infrastructure is coordinated, and demand is aligned. The Critical Materials Collective offers a new model for systemic value chain collaboration, transforming fragmented secondary materials recovery into a strategic asset for climate, competitiveness, and supply chain resilience.
The Critical Materials Collective is backed by leading WBCSD Member Companies across the value chain who are committed to building circular systems that foster innovation, decarbonization, and long-term value.
By aligning strategies across sectors and geographies, the Collective provides a scalable model for accelerating circularity in materials that are foundational to the global energy transition and a circular economy.
Together, we are working to move to compositionally tighter, quality-preserving recycling systems—building the future of circular material sourcing at scale.
Email us at
cmc@wbcsd.org