Japan targets 2 mnt/year of high-grade scrap capacity under circular economy plan

• Low-/mid-grade scrap to be upgraded to higher-quality material
• AI-based sorting technology, advanced equipment to be promoted

Japan Metal Daily: Japan’s government on 21 April approved a comprehensive Circular Economy Action Plan, aimed at strengthening supply chains for critical minerals and recycled metal resources. As part of the initiative, a dedicated Metal Recycling Promotion Strategy has been introduced, setting a clear target to expand the supply of recycled materials by 2030.

A key focus of the plan is steel scrap, where the government aims to increase the annual supply capacity of high-grade scrap by 2 million tonnes (mnt). This move is aligned with the country’s push toward green steel (GX steel) production, which relies heavily on high-quality recycled inputs. To support this transition, the government will facilitate private-sector investment and technological development.

Focus on scrap quality upgrade, technology push

Efforts will be directed toward upgrading low- and medium-grade scrap into higher-quality material through the adoption of advanced sorting technologies, including AI-based systems and modern processing equipment. In addition, support will be extended for developing impurity detection technologies to improve efficiency and output quality in electric arc furnace (EAF)-based steelmaking.

Measures to curb exports, strengthen domestic recycling

The action plan also outlines a broader investment framework, with approximately JPY 1 trillion ($6.28 billion) earmarked through public-private collaboration by 2030 to secure critical minerals and recycled resources. To safeguard domestic recycling capacity, the government is also considering measures to curb the outflow of scrap and recyclable materials overseas. These include stricter regulations on scrapyards, potential implementation of a permit system, and expansion of export control mechanisms under existing waste management laws to cover used goods.

Overall, the policy reflects Japan’s strategic push to strengthen resource security while advancing decarbonisation through enhanced recycling and efficient material utilisation.

This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.