# Blockchain-Supported Recycling of Secondary Raw Materials

> 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.

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

Canonical URL: https://www.sapientblock.com/en/use-cases/oesterreichisches-klimafonds-projekt-seltene-metalle-kreislauf-fuehren

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence high
- **Editorial review:** Ufuk Avci, 15 April 2026

## 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.

## Benefits

- Companies can position themselves as sustainable partners through transparent supply chains and gain access to new markets for circular products.
- Blockchain technology enables tamper-proof documentation of all recycling processes, which strengthens trust among the involved actors.
- Seamless traceability of materials can lead to more efficient recycling processes and higher recovery rates.
- Companies can validly demonstrate their CO2 savings and sustainability efforts, which is relevant for ESG reports and investor communication.
- Employees benefit from clearer documentation of their work and can focus on more value-adding tasks when routine tasks are automated.

## Challenges

- Companies must agree on common standards for data collection and blockchain protocols, which involves coordination effort.
- Integrating blockchain systems into existing recycling infrastructure requires significant investments in IT systems and training.
- The scalability of blockchain solutions must be ensured for processing large material volumes, which presents technical challenges.
- Employees need to acquire additional digital skills to work with blockchain systems and scanning technologies.

## 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.

## Sources

- [KIRAMET - KI-basiertes Recycling von Metallabfällen](https://www.salzburgresearch.at/projekt/kiramet/)
- [LIBRAT Endbericht - Lithium-Ionen-Batterien Recycling Studie](https://www.klimafonds.gv.at/wp-content/uploads/2024/10/878117_LIBRAT_Endbericht_BOKU-MUL-WIFO.pdf)
- [Blockchainbasiertes Token-System kann beim Recycling von Plastikflaschen unterstützen](https://www.aau.at/blog/blockchainbasiertes-token-systems-kann-beim-recycling-von-plastikflaschen-unterstuetzen/)
- [Nutzung von Blockchain-Technologien](https://www.nachhaltige-hochschulen.at/wp-content/uploads/2025/05/Folien_Nutzung-Blockchain_Bogodistov_Stafyeyeva_Despotovic_MCI.pdf)