Resource Circulation Business Model

Resource Circulation Business Model

The Mitsubishi Materials Group is a complex corporate entity encompassing a wide range of technologies and expertise, from resources upstream to materials midstream to processed products downstream. We have continued to make the most of those capabilities on a Group-wide scale, in an effort to establish a recycling-oriented business model based on recovering resources from a wide range of waste products.
We strive to create cyclical value chains in each of our businesses, so that resources and materials are processed into products and then recycled back into materials. This also helps to promote recycling-oriented social systems (Circular Economy).
We will achieve growth throughout the value chain to expand resource recycling. We will achieve this by leveraging our strength in advanced dismantling and separation technologies in the home appliance recycling business, along with recycling technologies in the smelting business, expanding the range of items to which these technologies are applied, the regions in which we operate, and the scale of operations.
In the recycling of metal resources, we will recover used or discarded products, disassemble or separate them, input the materials into smelting or other processes to extract useful metal elements, then process or fabricate those elements into high-performance materials and products that will be supplied to the market.
In this way, we will design and build a circulatory system for resources through “veins” that circulate resources, “arteries” that supply high-performance materials and products, and once again through “veins” via the market. At the same time, the Renewable Energy Business will supply the renewable energy-based power it has generated to the entire business, contributing to progress in reducing greenhouse gases on the way to achieving carbon neutrality.

In Pursuit of a Resource Circulation Business Model

Purpose of activities

Activities during FYE March 2026

Self-assessment

Targets/plans for activities FYE March 2027 onwards

Expand processing of recyclables

(Metals/Resources Circulation Businesses)

An increase in the E-Scrap processing capacity of the Naoshima Smelter & Refinery was planned

A

Strengthen and expand the scale of networks aimed at recycling resources

Facilities for enhancing the recycled raw material pre-processing at the Onahama Smelter & Refinery of Onahama Smelting & Refining Co., Ltd. were installed and planned

Increase the recycling rate by expanding E-Scrap processing

Create a recycling business for rare earth elements and rare metals

Aiming to be the driving force of resource-recycling systems

Providing reliable recycling systems, such as by ensuring traceability

(Metals/Resources Circulation Businesses))

Launched an ISO-compliant mass balance electrolytic copper supply service as a new REMINE series, expanding the lineup to seven products and services

A

Gradually extend the application of the mass balance supply scheme to additional products

Strengthened the business foundation for secondary-material smelting in North America and accelerated global expansion

Promote the full-scale operation of the North American business through the establishment of smelting technologies and collaboration with partners

Considered commercialization of home appliance recycling business in Malaysia

Investment decision after enactment of legislation, consideration of expansion to other regions

Established implementation and management policies for the resource recycling system with users and expanded applicable users

Established implementation and management policies for the resource recycling system with users and expanded applicable users

Expanded the home appliance recycling business, promoted the automation of home appliance recycling, and improved the added value of collected items

Expand the home appliance recycling business, promote automation of home appliance recycling, and improve the added value of collected items

Expanded the introduction of the home appliance recycling operation management system and model number recognition technologies (other sites, upstream processes)

Expand introduction of home appliance recycling operation management system and model number recognition technologies (other sites, upstream processes)

Demonstrated HV motor recycling technologies and LIB recycling technologies

Commercialization of HV motor recycling technologies and LIB recycling technologies

Promoting the recycling of fluorine resources

(Advanced Products Business (Electronic Materials & Components))

The amount recycled was 1,172 tons/year, 2% below plan

B

Stable plant operations and achievement of recycled material usage targets

Production of hydrogen fluoride is scheduled to be terminated, and the plant shut down in March 2027

The raw material recycling rate was 14%

Improving our tungsten recycling rate

(Tungsten Business)

Conducting a feasibility assessment for expanding tungsten recycling capacity

A

Expansion of tungsten recycling processing capacity

Self-assessment: 
A = Target achieved 
B = Target mostly achieved 
C = Target not achieved

Resource Recycling with No Need for Final Disposal Sites

Smelter & Refinery: Recycling Resources from Urban Mines

The Mitsubishi Process

Our unique Mitsubishi Continuous Copper Smelting and Converting Process (The Mitsubishi Process) continuously produces blister copper from copper concentrate and recycled raw materials by connecting a series of three furnaces with pipes. As the required facilities are compact and help save energy and reduce costs, they have an exceptionally low environmental impact and produce a copper manufacturing process renowned for its high efficiency.

Cement Plants: Taking in, Detoxificating and Stabilizing Difficult-to-treat Waste from Other Industries

High Temperature Burning Process

Raw materials (including wastes and by-products) are prepared during the raw material grinding process and then sintered at high temperatures to produce a hydraulic mineral during the burning process. Once the raw mixture has reached the maximum temperature (1,450ºC) and a series of chemical reactions are completed, it is quickly cooled into an intermediate product called clinker.

  • MFC: Calciner

Key Features of Waste Treatment at Our Cement Plants

  • Capacity to treat large volumes of waste
  • Detoxification of waste products
  • No secondary waste (extending life span of final disposal sites)

Home Appliance Recycling Plants: Used Home Appliances are Dismantled and Recovered Items are Supplied as Materials

Reduction in Environmental Impact due to Recycling Home Appliances (LCA analysis for the fiscal year ended March 2026)

If recycling home appliances is conducted, so that resources are recovered from used appliances and reused as new materials.

Item

Total

Reduction in GHG emissions

(CO2 equivalent)

170 thousand tons

Reduction in consumption of natural mineral resources

440 thousand tons

Reduction in energy consumption

(crude oil equivalent)

90 thousand tons

Reduction in waste sent to landfill

120 thousand tons

The above table does not take into account the impact of recovering fluorocarbons (refrigerant fluorocarbons in air conditioners, refrigerators, and washing machines, and insulation fluorocarbons in refrigerators). Expressed in terms of CO2 emissions, recovering approximately 541 tons of recovered freon would equate to a reduction of approximately 1,080 thousand of tons.

  • The home appliance recycling plants subject to LCA evaluation are as follows.
    Hokkaido Eco Recycle Systems Co., Ltd.
    East Japan Recycling Systems Corp.
    Kansai Recycling Systems Co., Ltd. Main Plant, Second Plant
    Panasonic Eco Technology Kanto Co., Ltd.
    Chubu Eco Technology Co., Ltd.
  • “The National Institute of Advanced Industrial Science and Technology AIST-IDEA Ver. 4.0” is used to assess the effectiveness of reduction in environmental impact assessment.

Securing a Stable Supply of Copper Products

Using copper concentrate from environmentally friendly copper mines and leveraging the competitive edge of the Mitsubishi Continuous Copper Smelting and Converting Process, we operate a recycling business that boasts world-leading processing capacity, thus ensuring the steady supply of cleaner non-ferrous metal materials to society. While copper and precious metals grow more important reflecting various shifts such as EVs, IT, and decarbonized society, we fulfill our responsibility to supply materials with environmental considerations, thus contributing to the development of society and realization of a sustainable society.

Material Grid framework

Securing a Stable Supply of Cemented Carbide Tools

Tungsten, the main raw material used in cemented carbide tools, is a type of rare metal considered politically important for ensuring stable supply. Tungsten ore mines are unevenly distributed in some countries and regions, and there are risks of sharply rising prices and availability issues due to instability in international relations. We will actively promote the recycling of used cemented carbide tools and continue to ensure the stable supply of tungsten in the future.

FYE March 2021 result

FYE March 2022 result

FYE March 2023 result

FYE March 2024 result

FYE March 2025 result

FYE March 2026 result

Ratio of recycled cemented carbide tools as raw materia

41.8%

43.5%

50.0%

56.0%

58.6%

59.8%

Tungsten Recycling Process

Recycling in Individual Businesses

Metals/Resources Circulation Businesses

Recycling Rare Metals

PGM* are rare metals that are found in E-Scrap, etc. Group company Onahama Smelting & Refining Co., Ltd. refines PGM intermediate materials obtained from our Naoshima Smelter & Refinery, to create products such as metals and chemical compounds.
Platinum and palladium in particular are key materials in the automotive, electric and electronic sectors. With that in mind, we applied to register our brand with the London Platinum and Palladium Market (LPPM), as a means of ensuring credibility in the market, and successfully obtained certification in September 2012. We are determined to keep on improving the quality of our products, and make every effort to ensure stable supplies of rare metals.

  • Platinum Group Metals

The rare metal recycling process

Recycling Scrap

We use smelting technology for the purpose of recycling at our smelters and refineries. We take in a wide variety of scrap, including shredder dust and used batteries from sources such as used home appliances or scrap vehicles, and E-Scrap from sources such as used substrates and connectors. We then recycle scrap, by using it for raw materials or thermal energy, and recover valuable metals.

Home Appliances Recycling

Home appliances are made by combinations of various materials such as glass, plastic and rubber as well as metals such as steel, aluminum, and copper. Home appliances are first of all disassembled manually, then crushed and sorted at our home appliances recycling plants*2, which are operated in partnership with home appliance manufacturers. We have adopted several advanced sorting processes for components and materials, and are always trying to create more value from recovered materials and to improve recycling efficiency. We recover copper and other precious metals from recovered copper-based materials and printed circuit boards in our copper smelting process. Thus, we maximize the effect of synergies within our Group. In the fiscal year ended March 2026, we recycled 2,584 thousand units of home appliances at six plants of our five affiliated companies (6 companies, 7 plants, 3,444 thousand units). Recycling of this volume could reduce landfill disposal equivalent to 116 thousand tons.*3

Automated robotic picking of dismantled parts

  • This information is available only in Japanese on the website.
  1. Major partners: Hitachi, Ltd., Sharp Corporation, Panasonic Corporation
  2. The home appliance recycling plants subject to LCA evaluation are as follows.
    • Hokkaido Eco Recycle Systems Co., Ltd.
    • East Japan Recycling Systems Corp.
    • Kansai Recycling Systems Co., Ltd. Main Plant, Second Plant
    • Panasonic Eco Technology Kanto Co., Ltd.
    • Chubu Eco Technology Co., Ltd.

Launch of an ISO-Compliant Mass Balance Electrolytic Copper Supply Service
- Added to the REMINE Lineup as a New Series

We launched an electrolytic copper supply service applying the mass balance credit model*4 in accordance with guidelines that have been confirmed to comply with ISO standards. The service provides the environmental attributes sought by customers with the high level of reliability afforded by ISO compliance.

At conventional copper smelters, where ore-derived copper concentrates are mixed with various types of scrap raw materials to produce copper, it is difficult to supply customers with electrolytic copper derived from specific materials, such as recycled materials or materials recovered from end-of-life vehicles. The mass balance credit model has attracted increasing attention in recent years as a means of addressing this challenge.

To this end, Mitsubishi Materials established the Guideline of Mass Balance Credit Model for Copper Products (the “Guideline”), which sets out the rules for applying the mass balance credit model to copper products. ISO TC 308*5 experts from Mitsubishi Materials participated in the development of the Guideline, ensuring both the high level of reliability associated with ISO compliance and its practical feasibility in business operations.

Following a critical review*6 by the Japan Life Cycle Assessment Facilitation Centre, chaired by Dr. Atsushi Inaba, the Guideline became the first in the industry*7 to receive third-party confirmation of compliance with ISO 22095*8 and ISO 22095-2*9, the latter of which was published in January 2026.

The electrolytic copper supply service, which applies ISO-compliant mass balance in accordance with the Guideline, has been added to the lineup of Mitsubishi Materials’ recycled metal brand REMINE as a new series. The Guideline and the certificate of critical review issued by the third party are available on the dedicated REMINE website. The service will initially be applied to electrolytic copper and will subsequently be expanded to the Company’s copper and copper alloy products.

The Mitsubishi Materials Group has established Our Commitment as “For people, society and the earth, circulating resources for a sustainable future.” Through the continued supply of products and services under the REMINE series, the Group will maximize the effective use of finite resources and work toward achieving Our Commitment.

  1. Mass balance credit model:
     A mass balance model under which specific characteristics of raw materials are issued as credits and the issued credits are allocated to a product or a portion of a product. A mass balance model is one of the five chain of custody models defined in ISO 22095:2020. Under this model, raw materials or products with specified characteristics are mixed with raw materials or products without those characteristics in accordance with defined criteria. Chain of custody refers to the process by which inputs, outputs and related information are transferred, monitored and controlled as they move through each stage of the relevant value chain.

  2. ISO TC:
     An ISO technical committee established to develop standards in a specific technical field. ISO technical committees comprise representatives of ISO member countries and are responsible for considering and drafting standards. ISO TC 308 is responsible for ISO 22095, ISO 22095-2 and related standards.

  3. Critical review:
     A process in which ISO TC 308 experts assess whether the Guideline meets the requirements of ISO 22095 and ISO 22095-2.

  4. The first in the industry to receive third-party confirmation of compliance with both ISO 22095 and ISO 22095-2. Based on Mitsubishi Materials’ research as of January 2026.

  5. ISO 22095:2020, Chain of custody — General terminology and models:
     Specifies the requirements for five chain of custody models, including the mass balance model.

  6. ISO 22095-2:2026, Chain of custody — Part 2: Requirements and guidelines for mass balance:
     Specifies the requirements and guidelines for applying the mass balance model across all industries.

Tungsten Business

Recycling Tungsten

Waste containing rare metals has a high concentration of valuable materials, enabling rare metals to be recovered more efficiently than from natural resources. Recognizing that tungsten is a critical resource used in a wide range of applications, including cemented carbide tools as well as semiconductor and electronic materials, the Mitsubishi Materials Group leverages its integrated production system spanning from raw materials to finished products, together with a site network centered on Japan and Europe, to promote the global recycling of used products and scrap. Through these efforts, we contribute to the advancement of resource recycling while helping to ensure a stable supply of raw materials and mitigate supply risks.

Advanced Products Business (Electronic Materials & Components)

Recycling Fluorine Resources

We manufacture a range of fluorine compounds at the Group company Mitsubishi Materials Electronic Chemicals Co., Ltd., including materials for use in semiconductor manufacturing, flame retardant and antistatic materials, and hydrofluoric acid.Since the fiscal year ended March 2007, we have continued to engage in the recycling of fluorine resources in which we recover calcium fluoride waste emitted by companies using fluorine compounds and recycle it back into fluorine resources that can be used as alternative raw materials for fluorite. 

  • Due to the deterioration of the business environment, production of hydrogen fluoride will be terminated in March 2027. 
    Accordingly, the recycling of fluorine resources will also be discontinued as of March 2027.

Affiliated Business

Recycling Industrial Waste and Byproducts

Using a burning process that reaches temperatures of 1,450°C, the Group's cement plants detoxify and make effective use of industrial waste and other difficult-to-treat materials without generating any secondary waste. As well as using substances such as coal ash, construction sludge, sludge, incineration fly ash, copper slag byproducts from copper smelters, and gypsum as the raw materials of cement, we also turn materials such as waste plastics, waste tires and wood waste back into cement, by using them as a source of thermal energy.

Environmental Considerations Across the Product Life Cycle

Our company conducts Life Cycle Assessment (LCA) to quantitatively assess and analyze environmental impacts — such as energy consumption during manufacturing, waste generation, and hazardous substance usage — across all stages of cutting tools, from development through recycling and disposal. This initiative aims to minimize these impacts.

For newly developed products, we conduct evaluations based on the Environmental Harmony Product Evaluation Standards established by the Japan Cutting & Wear-resistant Tool Association (JTA). Evaluation criteria include factors such as long service life, reduced environmental impact for customers, and minimized manufacturing waste. As a result of this process, after JTA review, our products are certified as “Environmentally Friendly Products” for their contribution to reducing environmental impact.