Metal resources may potentially face an imbalance between demand and supply in the future. In particular, the demand for copper is increasing as an essential material for society’s decarbonization efforts, while the supply from mines is predicted to decrease. So, what can we do to ensure the future of our limited metal resources? The key lies in recycling, enabling us to utilize our existing metal resources over and over again.

The demand for copper is anticipated to rise significantly due to the decar- bonization of society. As an excellent electrical conductor, copper is an indispensable component in xEVs and equipment used for generating and transmitting renewable energy.
According to the International Energy Agency (IEA), a supply-demand imbalance is expected to emerge in the late 2020s, resulting in an estimated shortage of approximately 5.5 million tons by 2030. Even with the additional supply anticipated from mines in South America and other new mines under construction, it is unlikely that the supply will be able to meet the future demand.
Recycling plays a pivotal role in se- curing the future of our limited metal resources. In our Medium-term Management Strategy FY2031 (“FY2031 Strategy”), we have set out our commitment of “For people, society and the earth, circulating resources for a sustainable future.” Mitsubishi Materials is committed to addressing this challenge using the resource recycling capabilities we have developed over many years.

Mitsubishi Materials will establish a metal resource recycling system by integrating its disassembling and sorting technologies from home appliance recycling with its expertise and experience in separating and recovering valuable metals acquired through smelting. As part of the FY2031 Strategy, we will prioritize the recycling of metal resources. By expanding both the scope and scale of recycling operations, as well as the regions where it is implemented, we aim to achieve growth across the entire value chain. Mitsubishi Materials operates in two types of businesses: venous and arterial. Venous businesses involve collecting and recycling used products for reuse, while arterial businesses focus on product generation. The flow of goods within these businesses can be compared to the circulation of blood. In venous businesses, where used and discarded products are fed into the recycling process and reused as raw materials or materials, Mitsubishi Materials’ strength lies in its technologies cultivated over many years of smelting and home appliance recycling.

We secure metal resources from mines and deliver them to society. Mitsubishi Materials has invested in overseas copper mines to ensure stable procurement of clean copper concentrates. Currently, Mitsubishi Materials holds interests in four operational mines: Copper Mountain Mine in Canada, and Mantoverde Mine, Los Pelambres Mine, and Escondida Mine in Chile, and we secure approximately 150,000 tons of copper concentrates annually from these mines. While mining development has a long history, many easily accessible mining locations have already been exploited, resulting in the challenge of increasing production costs for mines. Moreover, there is a shortage of supply for rare metals like cobalt, despite the growing demand for them. To address these concerns, Mitsubishi Materials has set a target of increasing the volume of secured copper concentrate from the current 150,000 tons to over 500,000 tons  by FY2030. This will be achieved through participation in new medium-scale copper mines and other measures. This target represents approximately 30% of the copper concentrate volume processed at the Naoshima and Onahama Smelters and Refineries.

We solve resource challenges through the power of technological development. In 2020, Mitsubishi Materials established the Mining & Metallurgy Laboratories, expanding its existing smelting technology development base to include resource technology development functions. We are strengthening technological development to ensure superior and stable procurement of clean copper concentrates. One of the challenges faced by existing operational mines is the decrease in ore grade (metal content) due to deeper mining and the increasing impurities within copper concentrates. In response, Mitsubishi Materials has bolstered  its resource technologies through developments such as impurity removal techniques. This has enabled the establishment of a comprehensive development framework that spans from metallic mineral analysis to metal recycling technologies, allowing Mitsubishi Materials to swiftly tackle diverse technological challenges related to metallic minerals.

Mitsubishi Materials strives to become a leading and innovative player in the recycling of non-ferrous metal resources. By strengthening our processing capabilities  for recyclable items, including non-ferrous metals beyond E-Scrap, and leveraging our world-class electrolytic copper supply capacity, we aim to become a core supplier within the resource recycling ecosystem. One of our strengths is the Material Grid, which consists of copper, precious metals, lead, and tin smelters. Through enhanced collaboration along this value chain, focusing  on non-ferrous metals, we will expand our presence in the realm of resource recycling. Additionally, by driving inno- vative process development, we aim to enhance the efficiency of resource recycling, thereby swiftly bolstering our competitiveness and expanding our business. We are also focusing on discarded lithium-ion batteries (LIBs). With the increasing adoption of xEVs in society, the quantity of LIBs used is expected to increase several tens- fold by 2030. Therefore, Mitsubishi Materials is working on the early development of an integrated recycling process from LIBs to battery materials, as well as the collection of black mass* by leveraging our E-Scrap network.
Within our FY2031 Strategy, the establishment of a domestic recycling center is positioned as a key initiative. This center will serve as a central hub for consolidating and processing dismantled components from home appliances and automobiles, ensuring appropriate recycling procedures. Through the expansion of processing capabilities for various recyclable items, we aim to accelerate the recycling of metal resources.