A product classification approach to optimize circularity of critical resources – the case of NdFeB magnets

Abstract

The circular economy concept and critical resources have recently received significant momentum across the board. However, only little work is done so far to assess the role of circular economy strategies in reducing a system's vulnerability to the increasing supply risk experienced by a number of critical resources. This study is aimed at exploring different resource circularity options (e.g., reuse, refurbishment, remanufacturing, and recycling) for critical resources, such as neodymium (Nd) and dysprosium (Dy) that are two key rare earth elements (REEs) found in the neodymium-iron-boron (NdFeB) magnets, along their value chain. A product classification approach is presented to better understand the circularity potential of critical resources, which in this study is demonstrated by the case study of NdFeB magnets. The proposed approach allows for grouping products considering their most feasible resource circularity pathway. As a next step, the product classification approach leads to developing a theoretical framework for anthropogenic resource classification, inspired from the natural mineral resource classification system of the United States Geological Survey. The key advantage of anthropogenic resource classification is identification and grouping of products with respect to varying degree of economic and technical feasibility of resource recovery from them, under current and future framework conditions.