The use of decision support tools to accelerate the development of circular economic business models for hard disk drives and rare-earth magnets

Abstract

A case study of hard disk drives (HDDs) and rare-earth magnets is presented to show the use of decision support tools to identify and assess the barriers and opportunities for circular business models. Pilot demonstration projects, which showcased HDD circular recovery strategies, were useful as a low-risk opportunity for business model experimentation and to build trust among key supply chain actors.

A case study of hard disk drives and rare-earth magnets is presented to show the use of decision support tools (DSTs) to assess the complex interaction of variables that must be considered when demonstrating the viability of circular business models (CBMs). A mix of quantitative and qualitative DSTs such as life cycle assessment, techno-economic assessment, Ostrom's Framework for social-ecological systems, decision trees, and others were implemented by the iNEMI Value Recovery Project team to overcome many of the identified barriers to circular economy. The DSTs were used to guide stakeholder coordination, create and share environmental, logistical and financial data, and generate decision-making flowcharts which promote circular economic strategies. Demonstration projects were used as a low-risk opportunity for business model experimentation and to build trust among key supply chain actors. The tools highlighted by this case study could be useful for establishing or expanding CBMs for other electronic products or components, especially components containing critical materials.

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Acknowledgments

The authors acknowledge the International Electronics Manufacturing Initiative (iNEMI) for organizing this project. We thank all of the iNEMI Value Recovery of Used Electronics, Phase 2 project team for their incredible contributions.

Some of this work was supported by the Critical Materials Institute, an Energy Innovation Hub funded by the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Advanced Manufacturing Office for developing the punching process for intact magnet recovery, REE recycling technologies, techno-economic analysis, life cycle assessment, and system dynamics models.

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Correspondence to Carol Handwerker.

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Frost, K., Jin, H., Olson, W. et al. The use of decision support tools to accelerate the development of circular economic business models for hard disk drives and rare-earth magnets. MRS Energy & Sustainability 7, 22 (2020). https://doi.org/10.1557/mre.2020.21

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Keywords

  • circular economy
  • critical materials
  • rare-earths
  • recovery
  • reuse
  • recycling
  • sustainability
  • supply chain
  • life cycle assessment