US partner helps Itochu mine urban resources
Itochu is establishing a new business to recover critical minerals from discarded digital equipment, supporting Japan’s push to strengthen domestic recycling. The Japanese trading company is building a plant in Zama, near Tokyo, to process used smartphones and computers. The facility will open in November and relies on a partnership between Itochu’s subsidiary Belong and the US electronics recycler ERI. Together, they formed the joint venture ERI Japan in April.
The new site will process mainly used smartphones and computers. Devices will first undergo secure data wiping before being dismantled, shredded and sorted. The recovered metals and minerals will then be supplied to Japanese manufacturers for use in new products. This arrangement connects the US partner’s expertise with Japan’s need for local supply chains.
ERI has recycled around one million tonnes of devices since its launch in 2002. It brings established methods to the Zama project. Belong, which Itochu established in 2019, buys used smartphones from businesses before reselling refurbished devices through its Nicosuma platform in Japan and overseas. The company collects several million gadgets per year.
Japanese manufacturers are facing tighter supplies of technology metals. This pressure comes from geopolitical tensions and the rapid growth of artificial intelligence technologies. Itochu also expresses concern over supply security following China’s export controls on rare earth elements. The trade restrictions create a vulnerability that domestic processing helps mitigate.
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Analysts at Markets&Markets note that Japan will see faster growth than the global average. The e-cycling sector in Japan is projected to double from EUR 900 million in 2024 to EUR 1.8 billion by 2033. This acceleration reflects a broader shift toward securing domestic resources. Itochu highlights the importance of tapping the ‘urban mine’ to meet this demand.
Looking at the broader policy picture, Japan’s latest economic and fiscal policy guidelines call for greater domestic recycling to reduce reliance on imported raw materials. The Environment Ministry has recently announced plans to invest almost EUR 210 million in ‘circular leadership’. The funding will benefit electronics, critical metals, plastics and permanent magnet recycling.
Refurbishment and recovery
Combining refurbishment with material recovery is a logical next step for Itochu. The company believes demand for both refurbished electronics and recycling services will grow as the price of new smartphones continues to increase. Apple recently raised iPhone prices in the Japanese market, making second-hand devices a more attractive option for consumers.
Industry data supports the expansion. Itochu cites market figures that expect the global electronics recycling sector to be worth EUR 22.7 billion by 2029. This represents a jump of more than 7% compound annual growth on the EUR 15.7 billion reported in 2024. The logistics of moving devices from consumers to processing plants creates a steady stream of feedstock for the new plant.
