The report – Increasing UK Metal Recycling – focused on enhancing the circular economy of priority metals (steel and aluminium) and identifying barriers and opportunities for metal recirculation in the UK.
The environmental action NGO also examined ways to increase investment into metal recycling in the UK – particularly into “cleaner” technologies.
The report was produced in collaboration with the Interdisciplinary Centre for Circular Metals which aims to make the UK the first country in the world to realise full metal circulation.
Challenges facing the UK metal recycling industry
The report outlined several challenges facing the UK metal recycling industry – including “priority metals”.
In particular, for steel, WRAP said that more investment is needed into Electric Arc Furnaces (EAFs) which incorporate a higher proportion of recycled feedstock than Blast Oxygen Furnaces, whilst also reducing energy demand.
The report also found that the aluminium industry is facing high levels of contamination and difficulty in separating aluminium alloys from other materials or other aluminium alloys.
WRAP said that the capital investment required for the steel-related innovations alone is estimated to be in excess of £3.6 billion.
The report also examined policy options to reduce dependence on imports and stimulate investment. According to the NGO, the UK currently exports most of the scrap metal it produces – leaving the industry “exposed to market volatility and high raw material costs”.
Policy suggestions for UK metal recycling
The report suggested several policy interventions alongside global case studies of each. Suggested interventions included:
- Carbon border adjustment mechanism: This could incentivise investment by levelling the playing field for UK-based producers.
- Extended Producer Responsibility (EPR): This could raise funding for infrastructure transformation.
- Digital Product Passports: To improve traceability and recycling potential of materials.
- Improved sorting technologies: Innovations in sorting and separation can enhance aluminium recycling efficiency.
- Secure more funding: Funding from the UK Investment Bank (National Wealth Fund) could provide significant private capital over time.
WRAP emphasised that there is no single intervention that will encourage more domestic recycling of domestically produced scrap metals, and a range of interventions will need to be pursued.
Investment into metal recycling in the UK
In September 2023, Tata Steel and the UK government announced a joint investment in EAF steelmaking with a capital cost of £1.25 billion – which included a grant from the UK government of up to £500 million.
In October, Tata Steel announced a contract with a metals technology manufacturer to deliver an EAF and additional steelmaking equipment to its Port Talbot site in Wales and the subsequent closing of its blast furnaces.
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