A circular economy requires quality, data, and collaboration

August 27, 2026

Metals and plastics form the basis of numerous industrial products. Their return to high-quality material cycles is therefore crucial for resource security, climate protection, and competitiveness. Two recent brief papers from the VDI Center for Resource Efficiency show where the industry stands today and what challenges still need to be overcome.

Established recycling structures already exist for steel, copper, and aluminum. Significant gaps exist for technology metals, such as those found in batteries, electronics, permanent magnets, or solar modules. The prerequisites for high-quality recovery include separate collection, efficient sorting processes, transparent material information, and products designed for recycling.

In plastics processing, too, simply increasing recycling volumes is not enough on its own. Fluctuating recycled material qualities, limited availability, and economic uncertainties complicate industrial use. Mechanical and, to a lesser extent, chemical recycling must therefore be combined with quality assurance, digital technologies, bio-based plastics, and collaboration along the value chain.

Both brief papers provide an overview and make it clear: Closed-loop systems do not arise solely in recycling facilities. What is needed is an integrated approach that brings together product design, collection, sorting, data availability, processing, and business models. For small and medium-sized enterprises in particular, material data collection, strategic partnerships, and the targeted use of secondary raw materials offer concrete starting points for transformation.
Further information:
Briefing Paper No. 2: Waste Management and Recycling in the Metal Industry

Briefing Paper No. 3: Circular Economy and Resource Efficiency in the Plastics Processing Industry