Phone recycling could unlock ₹21,000 crore in critical minerals by 2040

Better mobile phone design, repair systems and recycling infrastructure could help North America recover critical minerals worth an estimated ₹21,000 crore by 2040, according to a new report from the Ellen MacArthur Foundation. The estimate is based on the report’s valuation of ₹21,120 crore after converting its ₹2.2-billion equivalent figure at roughly ₹96 to the US dollar.

The report, Missing Signal: Unlocking a Circular Economy for Mobile Phones in North America, examines how the United States, Canada and Mexico could retain more valuable materials from phones instead of sending them into waste streams or overseas processing.

Key Highlights

• ₹21,000 crore: Potential value of recoverable critical minerals by 2040.

• 2 billion phones: Expected to reach end of life in the US by 2040.

• Better recycling: Design, collection and processing upgrades are central to recovery.

Phone design could make recycling more efficient

The Ellen MacArthur Foundation said manufacturers could improve recovery rates by designing phones for longer use, easier repairs and non-destructive disassembly. Features such as heavy adhesives and difficult-to-remove batteries can make it harder for recyclers to separate valuable materials efficiently.

The foundation also highlighted the importance of longer software support, repairability requirements and business models based around resale, refurbishment and maintenance. Such measures could keep phones and their components in circulation for longer before they reach the recycling stage.

Millions of unused phones remain outside recycling systems

A major challenge is the number of devices sitting unused in homes. The foundation has estimated that US residents have around 223 million “hibernating” smartphones stored in drawers or boxes rather than entering repair, resale or recycling channels.

Across North America, the foundation said around 50% to 70% of mobile phones receive a second life through repair, refurbishment, resale or being passed on. However, valuable materials eventually leave these reuse pathways and enter waste streams or are exported for processing.

More collection points could improve material recovery

The report calls for more convenient and formalised take-back options so consumers have easier ways to return old phones. Better collection systems could provide recyclers and refurbishers with a more reliable supply of devices.

It also points to inconsistent electronics recycling rules across US states as another challenge. Differences over whether mobile phones and embedded batteries are covered can create fragmented end-of-use pathways, limiting the number of devices entering formal collection systems.

North America needs more processing capacity

Collection alone may not be enough. The foundation said North America also needs greater secondary processing capacity to recover metals and return them to manufacturing supply chains.

The report notes that facilities capable of processing high-value materials from printed circuit boards at scale remain limited in the region. Expanding such infrastructure could help retain recovered minerals within North American supply chains rather than relying on overseas processing.

The report therefore frames phone recycling as part of a broader circular economy approach, combining longer-lasting devices, repair, reuse, formal collection and expanded material recovery infrastructure.