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Blockchain-Supported Recycling of Secondary Raw Materials

Sector: Secondary sector · Industry: Metal industry · Organisation: Österreichisches Klimafonds-Projekt (BOKU, WIFO) · Maturity level: Pilot

This use case describes the application of blockchain technology for transparent tracking and documentation of recycling processes for secondary raw materials such as rare metals. The goal is to improve opaque supply chains in the circular economy through immutable data records. However, the specific details of this use case could not be verified during the research.

Documentation status

Description

Rare and critical metals (lithium, cobalt, nickel, neodymium) are central to batteries, electric motors and wind turbines. The EU has classified these as strategic raw materials (Critical Raw Materials Act, 2024) and increasingly requires recycling quota proofs. Blockchain offers tamper-proof documentation of recycling streams.

Austrian research projects: KIRAMET (Salzburg Research) combines AI-based sorting technology with blockchain tracking for metal waste — AI identifies metal types from images; sorting results are documented on the blockchain. LIBRAT (Lithium-Ion Battery Recycling and Analysis and Technology, BOKU + MUL + WIFO) examined the entire value chain for lithium-ion battery recycling in Austria and considered blockchain as a traceability tool. University of Klagenfurt (AAU) researched blockchain-based token systems for plastic bottle recycling as a model application for the circular economy. MCI Innsbruck published research results on blockchain use in the circular economy. EU context: The EU Battery Regulation (from 2024) requires digital battery passports with proof of recycled content; blockchain is a natural candidate for the infrastructure of these passports.

Perspectives

B2B — organisations perspective

Battery manufacturers, recycling companies and OEMs can meet EU Battery Regulation and Critical Raw Materials Act requirements through blockchain-based metal tracking systems — verified recycled content, seamless provenance documentation.

B2C — consumers perspective

End customers benefit indirectly from blockchain-supported recycling, as products made from traceably recycled materials become increasingly available. The greater transparency can also strengthen consumer trust in sustainable products.

Employees perspective

For employees in recycling companies, the daily work routine changes with the introduction of digital recording systems and blockchain technology. They need to learn how to scan materials correctly and operate digital processes. At the same time, repetitive documentation tasks can be automated, which can lead to relief.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

Blockchain technology enables immutable storage of transaction data in a decentralized network, creating traceable and tamper-proof documentation of recycling processes. For use in the metal industry, permissioned blockchains would be particularly suitable, where only authorised participants have access, meeting companies' data protection requirements. The technology can complement QR codes or RFID tags to link physical materials with digital data records.

Implementation examples

Blockchain-based token system for plastic bottle recycling

The aim of the project was to increase recycling rates by creating incentives for correct recycling behaviour. The blockchain enabled a traceable and tamper-proof recording of recycling activities.

A research project investigated how a blockchain-based token system can support the recycling of plastic bottles by creating incentives for correct recycling.

This project explored the application of blockchain technology to control recycling processes through a token system. Similar concepts could theoretically be applied to metal recycling, although the challenges in material identification and tracking are more complex than with plastic bottles. The project demonstrated the fundamental feasibility of blockchain-supported recycling incentive systems and provided insights for transferring the approach to other material flows.

The project addressed the problem of lacking incentives for recycling and the difficulty of validly proving recycling activities. These challenges are also relevant in metal recycling.

Tags

Circular economy, Transparency, Supply chain, Sustainability, Smart contract

Sources

  1. KIRAMET - KI-basiertes Recycling von Metallabfällen
  2. LIBRAT Endbericht - Lithium-Ionen-Batterien Recycling Studie
  3. Blockchainbasiertes Token-System kann beim Recycling von Plastikflaschen unterstützen
  4. Nutzung von Blockchain-Technologien