Have you heard of the Great Pacific Garbage Patch (GPGP), an uninhabitable trash island spanning the Pacific Ocean? It’s a colossal accumulation of garbage formed by the convergence of immense amounts of debris carried by ocean currents, showing the seriousness of marine pollution. With a global garbage crisis looming, CNN reported on the reality of a so-called ‘Garbage Mountain’ in Uiseong-gun, Gyeongsangbuk-do, Korea. At that time, the Ministry of Environment estimated that there were over 235 such piles of waste exceeding one ton, vividly illustrating the seriousness of environmental contamination.

According to World Bank data, global annual solid waste generation reached 2.24 billion tons in 2020, projected to rise to 3.88 billion tons by 2050. To address this waste crisis, fundamental improvements in the resource circulation structure are needed. The existing linear economy model of production⟶ consumption⟶ incineration⟶ landfill results in resource wastage and ongoing environmental degradation. Hence, transitioning to a ‘circular economy’ that minimizes natural resource extraction and the amount of pollutants emitted is imperative.
*Circular economy: An environmentally friendly economic system that maximizes resource efficiency throughout the entire product lifecycle aiming for sustainability.

Currently, the world is facing extreme weather events due to excessive carbon emissions from indiscriminate resource use. In this context, the circular economy emerges as the most realistic solution for carbon neutrality. This is because a circular economy system allows for:
▲ Minimization of resource and energy inputs, and efficient utilization of resources.
▲ Reduction of waste generation by recycling used products, parts, and materials during the production stage.
▲ Preservation of product value through the establishment of product leasing and sharing systems.

Looking closely at discarded items, we can discover new value to achieve a circular economy. There are no gold mines in the city, but every household is filled with hidden minerals. This means that from old televisions to unused smartphones, various electronic devices contain metals that can be extracted. This process of recovering metal resources from various electronic waste is called as ‘urban mining’.

Urban mining is economically viable because the metal content is much higher than that found in ore extracted from traditional mines. With the growth of the appliance industry and the increase in new technology products, the volume of electronic waste is rising steeply, leading to an estimated annual potential value of at least 33 trillion won for rare metals within domestic urban mines. However, according to the UN’s 2019 E-waste report, it pointed out that “although 50 million tons of electrical and electronic waste are generated globally each year, only 20% of this waste undergoes proper recycling procedures.”

*Source : Olympic

As part of the eco-friendly initiative during the 2020 Tokyo Olympics, medals were crafted from metals recovered from discarded smartphones and electronic devices. This highlights the need to enhance future industrial competitiveness and resource security by activating the urban mining industry to extract rare metals from waste resources!

Korea Zinc is actively establishing a resource circulation system between steelmaking and smelting by recycling Electric-arc furnace dust (EAF-Dust). EAF-Dust is generated during the recycling process of scrap steel in electric furnaces, containing valuable metals such as zinc and iron powder, but also classified as industrial waste due to the inclusion of harmful substances. However, rather than disposing of it in landfills, Korea Zinc is reutilizing EAF-Dust. They process EAF-Dust in a rotary hearth furnace (RHF) to produce zinc oxide (HZO), which serves as a substitute for zinc concentrate. Additionally, they produce direct reduced iron (DRI), a raw material for the steelmaking process, supplying it to steel mills. This initiative aims to minimize the environmental impact by reducing industrial waste generation and promoting an eco-friendly circular economy structure.

The KZ resource circulation system utilizing EAF-Dust

The KZ resource circulation system utilizing EAF-Dust

Korea Zinc not only establishes a resource circulation structure but also contributes to delaying natural resource depletion by recovering valuable metals from electronic waste (E-waste) or reusing them as resources in other industries. Moreover, with the approval of the European Parliament’s ‘Sustainable Batteries Regulations’ in June, enhancing sustainability and circularity in battery lifecycles are becoming increasingly important. In fact, according to a report published by Samjong KPMG on ‘Battery Circular Economy and the Rise of the Electric Vehicle Waste Batteries Market and Corporate Response Strategies’, the global market for recycling waste batteries from electric vehicles is expected to reach $57.3 billion (approximately 68 trillion won) by 2040. Consequently, the market for recycling waste batteries is anticipated to receive even more attention as a future growth area.

Global Electric Vehicle Battery Market Outlook

*Source : SNE Research, Samjong KPMG Economic Research Institute Restructuring

Global Electric Vehicle Waste Battery Recycling Market Outlook

*Source : SNE Research, Samjong KPMG Economic Research Institute Restructuring

Battery circular economy is broadly classified into two methods. Reuse refers to diagnosing the residual capacity and safety of waste batteries recovered from electric vehicles and then utilizing them for other purposes such as ESS or small mobility. Recycling involves physically dismantling waste batteries that are difficult to reuse and extracting metals from them.

Positive Effects of Waste Battery Circular Economy

Positive Effects of Waste Battery Circular Economy

In particular, as stable production through mineral mining for battery production becomes increasingly challenging, the waste battery recycling market is witnessing a surge of participation from numerous companies. Korea Zinc, as a key player in the Troika drive, is strengthening its competitiveness in the secondary battery materials business. The extraction of battery raw materials such as nickel, cobalt, manganese, and lithium from waste batteries is akin to the smelting process of extracting raw metals from minerals. Therefore, through Korea Zinc’s advanced smelting capabilities, waste generation during the process can be drastically reduced. Beyond raw material extraction, Korea Zinc is committed to building its own battery recycling value chain by encompassing the production of nickel sulfate, cobalt sulfate, manganese sulfate, as well as precursor and cathode production.

Many countries are declaring carbon neutrality and the movement to transition to renewable energy is growing. In line with this trend, Korea Zinc will create a sustainable future that constantly creates new added value by reducing the landfills of various by-products from the smelting process and recycling them into useful resources.