Mitigating U.S. Dependency on foreign critical minerals: an integrated circular economy framework for recovery of cobalt and lithium from industrial waste

Abstract

The United States faces strategic vulnerability through dependence on foreign sources for critical minerals essential to clean energy technologies, electric vehicles, and national defense applications. Cobalt and lithium—fundamental to lithium-ion battery production—exemplify this challenge, with the U.S. importing over 75% of cobalt and 50% of lithium despite substantial domestic consumption. Geopolitical concentration of mineral supplies in potentially unstable regions creates supply chain risks that threaten energy transition goals and economic security. This research develops an integrated circular economy framework for recovering cobalt and lithium from industrial waste streams including spent batteries, manufacturing scrap, and mining tailings. We examine technical processes for metal extraction and purification, evaluate economic viability across different waste feedstocks, assess environmental impacts compared to primary mining, and analyze policy mechanisms that could accelerate circular mineral recovery. Through material flow analysis and techno-economic modeling, we demonstrate that comprehensive recycling infrastructure could supply 30-40% of U.S. cobalt demand and 15-25% of lithium demand by 2035, substantially reducing foreign dependency. The framework integrates hydrometallurgical and pyrometallurgical recovery processes optimized for different waste types, logistics networks aggregating dispersed waste streams, and quality assurance ensuring recovered materials meet battery-grade specifications. Key findings indicate that while recycling processes remain more expensive than primary extraction at current commodity prices, policy interventions including recycling mandates, extended producer responsibility, and public procurement preferences could bridge economic gaps while delivering supply security and environmental benefits. However, significant barriers persist including collection infrastructure gaps, technological limitations for certain waste streams, and insufficient economic incentives under current market conditions. This research contributes frameworks for strategic mineral security through circular economy approaches, providing actionable guidance for policymakers and industry stakeholders pursuing supply chain resilience.