📱 Did you know your old smartphone contains a treasure trove of over 10 different rare metals?
For decades, extracting these precious materials required painstaking manual labor. Now, AI and robotics are changing everything. After 30+ years of research, Japan has unveiled a fully automated rare metal recovery system that began operations in Osaka in September 2025. This revolutionary technology could transform Japan from a resource-poor nation into a self-sufficient powerhouse.
What is Urban Mining? Japan's Hidden Resource Wealth
The concept of "urban mining" was coined in the 1980s by Professor Hideo Nanjyo of Tohoku University. It refers to treating discarded electronic devices—smartphones, computers, game consoles—as mineral deposits waiting to be extracted.
Japan's urban mine is remarkably rich. According to the National Institute for Materials Science, the country holds approximately 6,800 tons of gold (16% of global reserves) and 60,000 tons of silver (22%) in discarded electronics. Other critical materials include indium (61% of global reserves) and tantalum (10%).
Yet until now, this "above-ground mine" remained largely untapped. The culprit? Economics.
Why Traditional Recycling Failed
The rare metals in a single smartphone are worth roughly $0.70. Extracting them required skilled workers to manually disassemble each device—component by component, screw by screw. The labor costs made the economics impossible.
Beyond cost, technical challenges abound. Electronic circuit boards contain hundreds of tiny components in complex arrangements. Tantalum capacitors look identical to niobium capacitors to the human eye. Contamination between these materials degrades the quality of recycled products, forcing recyclers to be extremely conservative.
30 Years of Research: Dr. Tatsuya Oki's Mission
Enter Dr. Tatsuya Oki, Chief Research Scientist at Japan's National Institute of Advanced Industrial Science and Technology (AIST). For over three decades, he has pursued a singular goal: automating urban mining.
In 2012, Dr. Oki introduced the concept of "Strategic Urban Mining"—a proactive approach where manufacturing (arterial industry) and recycling (venous industry) work together to systematically circulate resources. The following year, he established SURE (Strategic Urban mining REsearch base) at AIST.
The breakthrough came through physical separation technologies. Rather than using chemical processes, Dr. Oki's methods leverage air currents, density differences, and magnetic properties to sort materials. This approach minimizes environmental impact while achieving high-purity recovery.
September 2025: The System Goes Live
Dr. Oki's decades of research culminated in a fully automated recovery unit, assembled in September 2025 at DINS Kansai, part of the Daiei Environment Group in Sakai City, Osaka.
The system processes six categories of small electronics end-to-end:
- Smartphones
- Tablets
- Feature phones
- Digital cameras
- Video cameras
- Portable gaming devices
A database of approximately 2,000 device models enables AI-powered identification. The system analyzes 3D images and weight data to determine each device's make and model, then selects the optimal processing pathway.
For smartphones and tablets with fire-prone lithium batteries, X-ray imaging first locates the battery position before careful dismantling. Other devices proceed to a shredder-type disassembler, with final separation achieved through air-based sorting technology.
The system recovers up to 10 different rare metals in a single pass: tantalum, cobalt, nickel, lithium, and others essential for high-tech manufacturing.
Targeting Commercial Operations by 2028
The project—a collaboration between Daiei Environment, AIST, Sato Tekko, and others under NEDO's commission—aims to establish continuous operation technology by 2027 and begin commercial operations from 2028.
Current testing focuses on validating sorting accuracy, preventing equipment jams, and identifying other practical challenges before scale-up.
A Trump Card for Economic Security
The technology's significance extends beyond environmental benefits. It's increasingly viewed as a strategic asset for economic security.
China dominates global rare metal production, particularly rare earth elements. In 2010, during the Senkaku Islands dispute, China restricted rare earth exports to Japan, causing prices to skyrocket and disrupting Japanese manufacturing. As of 2025, amid intensifying US-China tensions, China has further tightened export controls.
Japan imports virtually 100% of its rare metals. Increasing self-sufficiency through urban mining addresses a critical vulnerability. If this automated recovery technology achieves commercial viability, it could fundamentally reshape Japan's position in resource diplomacy.
Government Policy Catches Up
The Japanese government is accelerating rare metal recycling initiatives.
The Ministry of Economy, Trade and Industry has been working since 2024 to mandate rare metal recovery and reuse through amendments to the Act on Promotion of Effective Utilization of Resources. Initial targets include manufacturing scraps from battery production, with eventual expansion to cover used EV batteries.
The government has committed 30 billion yen over three years starting in 2024 to support domestic e-waste recycling infrastructure.
Global Recognition of Japan's Leadership
Japan's urban mining expertise has earned international recognition. The International Institute for Strategic Studies (IISS) noted in an August 2025 report that Japan has led the global urban mining field for nearly two decades, playing a crucial role in countering China's resource dominance and securing supply chain security for itself and partner nations.
Washington State in the US is now considering a "Circular Copper Initiative" modeled on Japan's urban mining program.
What About Your Country?
In Japan, discarded smartphones and game consoles are being transformed into "urban mines." AI and robotics are replacing human hands, efficiently recovering resources that have long lain dormant. Perhaps this innovation emerged precisely because Japan—a resource-poor island nation—had no choice but to think creatively.
How does your country handle electronic waste collection and recycling? Is the concept of urban mining widely known? What happens to discarded electronics where you live?
We'd love to hear about your country's approach and your thoughts on this technology. Please share in the comments!
References
Reactions in Japan
Dr. Oki spent 30 years on this research and it's finally becoming practical. He's truly amazing. We need better systems to support this kind of fundamental research.
I have 3 old smartphones sleeping in my drawer... When this technology spreads, I'd actively want to recycle them. I hope they increase collection boxes!
From an economic security perspective, this is groundbreaking. Reducing dependence on China should be a national priority. The key is whether it can be commercially viable.
They say commercialization by 2028, but will it be profitable? If rare metal prices drop, the business might not survive. I have a feeling it'll end up relying on subsidies.
They're doing the pilot test near my home! I'm proud to think world-changing technology might come from Sakai. I'd love to join if they have facility tours.
Automation solving labor shortages is huge. I hope this technology becomes available to small businesses like ours, but the capital investment barrier seems high...
Gotta check Daiei Environment's stock price. Urban mining related stocks might become a theme. Could be relevant for REITs and ESG investing too.
Dr. Oki's words about 'thinking ahead with foresight' really resonated with me. Japan still has environments where you can do research looking 30 years ahead. I want to follow his example.
How much energy does the recovery process consume? We need verification that it's truly good for the environment, including the carbon footprint.
Portable game consoles are included too... I have mixed feelings about rare retro gaming devices being recycled. Well, if they're broken, I guess it can't be helped.
It was hard to explain to my kids why we shouldn't just throw away smartphones, but the concept of urban mining is easy to understand. Could be useful for education.
With China tightening rare metal export controls, the timing of this commercialization is perfect. But China won't stay silent. Watch out for countermeasures.
AI automatically identifying 2000 device models is quietly impressive. Combining image recognition with X-ray technology. This kind of AI application has real social significance.
We've always left end-of-life PCs and phones to contractors, but now I want to verify they're properly recycled. Including data security measures.
Resource circulation is ultimately about global sustainability. If Japanese technology spreads worldwide, it can contribute to solving problems for all humanity. How exciting!
We have similar initiatives in the US, but Japan's automation level is impressive. I knew Washington State was modeling Japan's program, but didn't realize it had advanced this far. Silicon Valley companies should pay attention.
Germany has strict recycling regulations, but our automation technology still lags behind Japan. We should incorporate this tech into EU circular economy policy. Technology cooperation with Japan should be accelerated.
As a Chinese person, I have mixed feelings. Yes, China has dominated the rare metal market, but Japan's technology could change the market balance. China should also accelerate urban mining technology development.
E-waste disposal is a major problem in India. Informal recyclers often work under hazardous conditions. A safe and efficient system like Japan's could dramatically improve the situation here.
Australia is a mining powerhouse, so urban mining hasn't gotten much attention here. But given our deteriorating relations with China, Japan's approach has lessons for us. Worth considering as an alternative rare earth supply.
The Netherlands already has high e-waste recycling rates, but rare metal-specific recovery is still developing. Japan's air-based sorting that doesn't use chemicals is great. Environmentally friendly too.
Korea is researching urban mining too, but we haven't caught up with Japan's 30 years of accumulation. Samsung and LG should more seriously pursue rare metal recovery from discarded products. Maybe Japan-Korea cooperation?
In Brazil, most e-waste just ends up in landfills. Government regulations are weak and recycling infrastructure is lacking. To adopt technology like Japan's, we first need policy and awareness reform.
France has enacted 'right to repair' laws to promote product longevity. But for when recycling eventually becomes necessary, Japan's approach is a good reference.
In Egypt and Africa, e-waste from developed countries is flowing in and causing problems. If technology like Japan's spreads to developing countries, e-waste becomes a resource, not waste. I hope for international cooperation.
Poland follows EU directives for e-waste recycling, but rare metal recovery efficiency is still low. If Japan's technology could be adopted across the EU, resource self-sufficiency would greatly improve.
Canada has a strong mining industry so interest in urban mining is low, but considering environmental impact, we may need to shift direction. Japan's tech is cleaner than extraction and could be economically advantageous long-term.
I'm a Japanese-British living in the UK. Post-Brexit, Britain is exploring its own recycling policies. I'd heard about urban mining from my Japanese parents but didn't know it had advanced this far. Looking forward to UK-Japan tech transfer.
Electronics production is growing in Vietnam, but recycling infrastructure can't keep up. If Japanese companies deploy this technology in Vietnam, both countries would benefit. I hope for ASEAN-Japan cooperation.
Sweden is known as an environmental leader, but honestly, I'm envious of Japan's technology. Nordic countries are researching AI-based resource recovery too, but Japan is leading in practical implementation.