Latin America could recover $209 billion by 2050 through tech recycling

Latin America and the Caribbean stand to gain $209 billion by 2050 through the recycling of clean energy technologies like solar panels, wind turbines, and batteries, according to a report by the Latin American and Caribbean Energy Organization (Olacde).

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Although the boom in solar and wind technology began just a decade ago and most current equipment has not reached its end of life, premature failures and technological renewal are accelerating the disposal of panels, wind turbines, and batteries.

While the boom in solar and wind power is relatively recent, premature failures and technological upgrades are accelerating the disposal of equipment. This waste stream presents a significant circular economy opportunity, with Olacde estimating the recoverable value of materials at $209 billion.

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This scenario has led several countries to design plans, programs, and regulations for recycling reusable components, aiming to mitigate environmental impacts throughout the lifecycle of these technologies, preventing heavy metals, plastics, and corrosive or toxic substances from affecting soil, air, and water.

The region currently has 150 million solar panels and 16,000 wind turbines in operation. By mid-century, these technologies will contain an estimated 81 million tons of materials, including 36 million tons of steel and 4 million tons of copper. Recovering these critical materials could lessen dependence on new raw materials, decrease strategic imports, foster new regional value chains, and create specialized employment.

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The generation of this waste constitutes a circular economy opportunity whose potentially recoverable economic value could reach $209 billion by 2050, through strategies of recycling, reuse, and material valorization.

However, developing this recycling industry faces hurdles. Olacde warns that robust regulatory frameworks, extended producer responsibility schemes, and effective traceability and reverse logistics systems are still nascent in most countries. Strengthening these capabilities is crucial for realizing the economic and environmental benefits.

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81 million tons of total materials will be incorporated into transition technologies and 36 million tons will correspond to steel, equivalent to 63% of the region's current annual production of this metal.