The Sustainable Future of the Technology Industry: Microsoft Recovers Rare Earth Elements from Recycled Electronic Devices
28/04/2025
Microsoft, like other major technology companies, is actively working to reduce waste and implement circular economy principles.
One of the company's effective and innovative initiatives in this direction involves recovering rare earth elements and precious metals from hard drives.
Microsoft is carrying out this project in collaboration with Western Digital, Critical Materials Recycling, and PedalPoint Recycling. They are recovering rare earth elements and precious metals from old computer equipment and recycled electronic devices without the use of acids.
In 2024, Microsoft recycled or reused nearly 91% of the servers and other equipment decommissioned from its data centers. As part of a pilot project, 22,680 kilograms of obsolete hard drives have already been recycled, from which the following have been recovered:
Neodymium, Praseodymium, and Dysprosium – these elements are important components of magnets used in electric vehicles and wind turbines. Gold, Copper, Aluminum, and Steel.
This initiative by Microsoft impacts both the economy and the environment. The demand for rare earth metals is increasing by 9% annually, and the market volume is expected to reach $16.3 billion by 2030.
Rare earth elements are essential for creating modern technologies. These elements are used to build the necessary infrastructure for renewable energy systems, such as wind turbines and electric vehicles. Consequently, the demand for these elements is constantly growing.
Their traditional extraction methods cause significant environmental damage. Recovering these elements from electronic waste (e-waste) reduces the need for new mining, the amount of waste, and greenhouse gas emissions.
Microsoft's latest initiative also serves to stabilize the supply chain. The supply chain for rare earth elements is largely controlled by China, which accounts for approximately 61% of their production and 92% of their recycling. This creates certain geopolitical risks, as supply disruptions or price instability could seriously impact the global industry, especially amid tensions between the U.S. and China. Microsoft's initiative helps reduce dependence on foreign sources and enhances national security.
Microsoft's recovery of rare earth elements is not just a technological innovation; it's a significant step that reduces environmental harm and strengthens circular economy principles within the technology industry.
Sources:
https://trellis.net/article/microsoft-mining-hard-drives-for-rare-earths/