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Gov't unveils measures to boost critical mineral recycling amid global supply chain uncertainty

Published: 31 Oct. 2025, 12:23 Updated: 31 Oct. 2025, 14:16

Bundles of copper cables [AP/YONHAP]

The government on Friday unveiled a plan to promote recycling of critical minerals by easing regulations and expanding financial and tax incentives, as part of its wider goal to stabilize supply chains, the Industry Ministry said.

The measures were announced during a supply chain meeting chaired by Finance Minister Koo Yun-cheol, amid rising global uncertainty in raw material supply chains due to rising tech rivalry and escalating geopolitical tensions, the ministry said.

Critical mineral recycling refers to the process of reprocessing materials recovered from waste to produce critical minerals, which are essential for advanced industries.

The domestic critical mineral recycling market is expected to expand from 6.7 trillion won ($4.7 billion) in 2024 to 21.1 trillion won by 2040.

Despite the growth potential, high technological and capital barriers have hindered private sector expansion, with many companies lacking the resources for new investments, officials said.

The government aims to raise the recycling rate of 10 strategic critical minerals to 20 percent by 2030 through regulatory reforms and industry support.

First, the government plans to reduce tariffs, considering global rates, the ministry said. Currently, major economies, such as Japan, the United States and the European Union, apply zero tariffs to key materials used in critical mineral recycling.

The government will also establish a joint council comprised of representatives from both the public and private sectors to identify promising recycling projects and provide direct investment through a supply chain stabilization fund.

Additionally, the government plans to ease regulations on recycling material distribution by classifying some materials as "recyclable resources" rather than waste, reducing restrictions on transport and storage.

Yonhap