Circular Economy in Electronics: A Comprehensive Overview, by Ole Gerkensmeyer

By Victoria Fellows

October 18, 2025

The circular economy in electronics addresses one of the most pressing environmental challenges of the 21st century: the rise of electronic waste (e-waste). Unlike the conventional linear model of “take-make-dispose,” the circular approach prioritizes strategies such as recycling, refurbishing, and reusing products at the highest possible level.

This model emphasizes extending product life cycles, conserving resources, and minimizing environmental impact. With global e-waste projected to increase dramatically in the coming decade, shifting away from the throwaway culture of electronics is both urgent and achievable.

Key Concepts

Several concepts form the backbone of circular economy practices in electronics. The EU Green Deal, which targets climate neutrality by 2050, specifically addresses e-waste, currently the world’s fastest-growing waste stream. Policies encourage reuse, recycling, and sustainable product design, thereby embedding circularity into industrial frameworks.

Urban mining is another cornerstone, focusing on recovering valuable metals such as gold, copper, and aluminum from discarded electronics. This decreases dependency on virgin resource extraction, reduces environmental degradation, and supplies critical materials for new devices. Equally important is the Product Carbon Footprint (PCF), which tracks emissions across a product’s life cycle. While PCF integration into electronics is still developing, it offers a way to link emissions reduction with circular practices.

The WEEE Directive further enforces producer responsibility by mandating collection and recycling programs. These policies align with the concept of R-strategies—a hierarchy that includes Refuse, Reduce, Reuse, Repair, Refurbish, Remanufacture, and Recycle—providing structured guidance for maximizing resource efficiency.

The Mandate from the E-Waste Crisis

E-waste represents a global crisis accelerating at alarming rates. In 2022, approximately 62 million tonnes of e-waste were generated worldwide, and by 2030, this figure may reach 82 million tonnes. Yet only around 22% is effectively recycled. The environmental consequences are severe, given the presence of hazardous elements like mercury, lead, and brominated plastics. Beyond pollution, resource loss is another major issue. Electronics contain valuable critical materials that, when discarded, drive further mining and carbon-intensive production, reinforcing the need for circular alternatives.

Current Implementation of R-Strategies

Evidence of circularity exists across the electronics sector but varies in effectiveness.
Recycling is the most widespread, especially targeting high-value metals, though it typically destroys intact components that still hold utility. Refurbishment, a growing practice, extends the life cycle of laptops, smartphones, and household appliances, benefiting affordability and sustainability.
Reuse at the product level provides the greatest preservation of value. For instance, electric vehicle (EV) batteries are increasingly finding second-life applications in stationary energy storage, reducing waste and stabilizing renewable energy supply chains.

Requirements for High-Level Reuse

For reuse and second-life applications to scale, several challenges must be resolved. Extracting components—particularly semiconductors—can be costly, requiring modular designs that support easier disassembly. Component aging also demands rigorous testing to ensure performance and safety. Advanced degradation tracking tools that monitor stressors like temperature, load, and voltage are essential to predict failures. Software licensing needs to evolve to allow updates or transferable rights for refurbished devices. In parallel, user expectations for performance, reliability, and warranty equivalency must be met through stringent testing and quality processes.

Business Case for Circular Electronics

Circularity in electronics is not merely a sustainability ambition; it carries compelling economic incentives. Manufacturers can achieve significant cost savings by reusing first-life components instead of sourcing new materials. The refurbished marketcontinues to expand, tapping into consumer demand for affordable, reliable devices. Moreover, firms adopting circular practices gain new competencies in logistics, repair services, and component recovery, creating avenues for innovation and revenue diversification while reinforcing brand responsibility.

Conclusion and Future Outlook

The shift toward a circular economy in electronics is both a necessity and an opportunity. With e-waste volumes climbing and linear production increasingly untenable, circular practices represent a pragmatic path forward. By embedding R-strategies, improving product design, and aligning with evolving regulatory frameworks, the sector can transition from waste-intensive operations to sustainable growth. Far from being an unavoidable burden, e-waste can become a rich resource base, powering future generations of electronics responsibly and profitably.

Ole Gerkensmeyer has over 20 years of experience in the field of semiconductors, electronics, telecommunications, automotive and industrial segments – with strong focus on innovation, industrial partnerships and implementation of meaningful business cooperations.