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The Raw Materials Challenge: Impacts on the Electronics and Communications Industry

The scarcity of natural resources is increasingly becoming a critical challenge for the electronics and communications sectors. With 97% of rare earth metals sourced from China, the industry faces significant risks concerning supply chains and pricing volatility. As global population growth continues to rise, the pressure on raw materials intensifies, leading to soaring production costs. To navigate these challenges, companies must adopt strategies like innovation, material substitution, and enhanced recycling processes to create resilient supply chains and ensure sustainable operations in a competitive marketplace.

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The Raw Materials Challenge: Impacts on the Electronics and Communications Industry

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  1. Electronics Industry Competes for Raw Materials; Will the Scarcity of Natural Resources Become a Showstopper for the Information & Communications Industry? Ifixit.org, 2014

  2. Availability of Resources and Supply/Demand • High tech metals & rare earth elements • Resources/Reserves • Competitive marketplace • 97% of rare earth metals in China

  3. How does the price of a material affect how mining companies operate? • Production costs • Increase in population • High price for raw materials • more investment in mining technologies • Resources & reserves

  4. What strategies can be employed to make a company more resilient to fluctuations in raw materials markets? • A more secure supply chain • Innovation • Substitution of materials • ‘closed loop’ operation Greenpost.com, 2014

  5. Can recycling play a role in availability of materials? • Urban and landfill mining • The WEEE directive • Private companies • Regulation Estrallamountain.edu, 2014

  6. What Does the Industry Need to Do? • Develop a wider supply base • Secure agreements on specific supply chains • Take an active role in material production • Evaluate product design and substitution • Establish a ‘closed loop’ recycling process

  7. E-Waste Management: From Waste to Resource • Hieronymi, K. (2012) Electronics Industry Competes for Raw Materials; Will the Scarcity of Natural Resources Become a Showstopper for the Information & Communications Industry? In E-waste management: from waste to resource, Kahhat, R., Hieronymi, K. & Williams, E., eds., Earthscan, London, 237-250 Hehir, 2014

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