Globally, only about 25 percent of electronic waste (e-waste) is recycled by both consumers and businesses alike. Increasing the amount of e-waste being recycled would remove environmentally harmful pollutants, but also recover valuable materials like platinum, palladium and copper.
Dr. Pragathi Darapaneni, senior materials scientist – battery systems and grid storage, said that the traditional view of e-waste as a disposal challenge has shifted, and is currently seen as a materials recovery opportunity.
“The rise of EVs, grid-scale batteries and AI/data center infrastructure has introduced a new generation of high-value, high-complexity waste streams, especially lithium-ion batteries and critical electronics,” said Darapaneni, who pointed to some key technological innovations reshaping the electronics recycling industry, including:
- Hydrometallurgical and direct recycling techniques that preserve cathode chemistries without fully reverting to elemental metals
- Non-thermal delamination processes, which reduce energy input and preserve active materials for second-life use
- AI-enabled sorting and robotic disassembly systems to process mixed e-waste more efficiently
- Integration of digital battery passports to track state-of-health, chemistry and recycling pathways, supporting closed-loop systems
“E-waste is no longer just a liability – it is a strategic resource for recovering lithium, cobalt, nickel and rare earth elements that are increasingly difficult to source sustainably,” Darapaneni said.
The e-waste recycling industry is undergoing rapid infrastructure expansion as well, especially in EV battery recycling. Since the passage of the Inflation Reduction Act (IRA), the industry has had over
a dozen new U.S. battery recycling facilities established or started by companies like Redwood Materials, Li-Cycle and Ascend Elements.
As Darapaneni pointed out, these facilities aim to localize supply chains, reduce import reliance, and meet federal incentives for recycled content in new batteries. At the same time, she said that consumer-facing e-waste efforts are still uneven. Some states have strong take-back programs and public-private partnerships, while others lag due to lack of awareness or funding. Businesses, especially those in tech and mobility, are more proactive – motivated by ESG goals and raw materials cost volatility.
“Overall, regulatory alignment, brand accountability and consumer incentives are improving, but we’re still in the early stages of scaled, systemic circularity,” Darapaneni said.
Facing Challenges
As the e-waste industry continues to evolve and grow, there are a wealth of challenges, such as economic viability and lack of standardization. Electronics contain varying amounts of high purity materials. Recovering these high purity materials is still cost intensive. In addition, there is a wide variation in design in electronics, which makes automated disassembly challenging.
As Darapaneni further explained, improperly handled lithium-ion batteries found within today’s electronics can be hazardous and a cause of safety concerns.
“For IT and consumer electronics, secure destruction of data-bearing components remains a barrier to return,” Darapaneni said. “The industry also grapples with policy fragmentation – a patchwork of state-level rules that complicate national logistics, reporting, and compliance. Long-term success will depend on consistent regulatory frameworks and investment in safer, lower-cost processing technology.”
Gene Genin is the chief executive officer and founding partner of OEM Source, Inc., a company founded in 2004 that specializes in sustainable asset recovery, secure data destruction and sustainable e-waste solutions within the global telecommunications industry. Genin said the gap between the number of electronics being disposed and recycling rates is widening, adding to the industry challenges.
“The rate of hardware refresh cycles has not reduced notably, even in businesses operating on the enterprise levels. However, the speed to secure disposal
is still shunned, especially due to the lack of education and accessible means to consumers and smaller businesses,” Genin said.
E-Waste Laws
The e-waste recycling industry is seeing a notable policy shift toward producer responsibility and cost internalization. While the United States has not enacted a comprehensive federal law specifically regulating e-waste management across the country, the Extended Producer Responsibility (EPR) laws are gaining momentum. Eleven states proposed new EPR regulations in 2023 and California, Colorado, Maine and Oregon have successfully passed EPR bills and manufacturing companies in these states will need to place more emphasis on manufacturing products designed with durability, recyclability, and minimal environmental impact.
The proposed Massachusetts Senate Bill 653 would adopt a more comprehensive approach to e-waste management through the introduction of an EPR framework. Under the bill, manufacturers – not municipalities – would finance and operate end-of-life collection and recycling programs for the products they sell, making them accountable for the environmental costs of their design decisions. There are also several new amendments being proposed on the state levels, which will introduce additional rules for battery-embedded products and requiring manufacturers to list covered and exempt products in an annual notice to retailers and regulatory agencies.
“The goal is to make OEMs and importers share the burden of collection and recycling. At the federal level, the EPA is updating its National Strategy for Electronics Stewardship, and there’s growing interest in harmonizing lithium-ion battery labeling and handling rules,” Drapaneni said. “Additionally, the DOE has launched a Battery Recycling Prize and Lithium-Ion Battery Supply Chain Strategy that explicitly include end-of-life management. We are also seeing more federal funding for public-private pilot programs and infrastructure grants that aim to standardize e-waste logistics and increase domestic processing capacity.”
Many states have implemented their own e-waste laws, focusing on residential and business collection programs, designated drop-off locations, and increased manufacturer responsibility. There are currently 25 states and the District of Columbia that have passed legislation related to electronics recycling. Several more states have proposed legislation in the past or are considering such legislation.
Genin noted that over the years, e-waste legislation has changed noticeably, and new laws that are more restrictive have developed in order to meet the environmental consequences of emitting waste.
“Nevertheless, the laws changed consumer behavior and caused more people to choose responsible recycling of their electronics. These trends indicate that consumer awareness and action in e-waste management can only increase as regulations get increasingly strict,” Genin added.
As the regulatory environment begins to play catch up, the laws in additional states have come under review and the concept EPR is gradually emerging.
“However, the majority of these transformations do not offer incentives towards consumers yet. Unless proper recycling can be as easy and reliable as putting your trash out at the curb, we can expect to continue piling up technology in garages, attics, storage facilities and landfills,” Genin said. “At OEM Source we treasure what others throw away. However, we desire more policies and better awareness so that responsible recycling becomes the norm and not the exception.”
Bob Bilbruck, chief executive officer at Captjur, added that the e-waste recycling market is really picking up steam as more people replace their old electronics faster than ever.
“Experts expect the market to grow significantly over the next few years, especially with valuable materials like lithium and rare earth metals being recovered. At the same time, states are updating their laws to make recycling easier and more appealing,” Bilbruck said. “Many now offer free drop-off programs or require retailers to take back old electronics when you buy new ones. Some even give small financial incentives or cover recycling costs through fees at the time of purchase. It’s all about making it less of a hassle and more worthwhile for consumers to do the right thing.”
Published September 2025