CERATIZIT Group

November 7, 2021

Scarcity of resources

No fear of resource scarcity: recycling, regrinding and refurbishment secure the tungsten and cobalt supply chain, while protecting the environment and your budget

When the order books are full and the machines are operating at peak capacity, no one likes to think about it: but what if tool replenishment is delayed due to a shortage of carbide, or tungsten and cobalt, the raw materials needed for its production? A nightmare scenario that could give many industry managers and executives sleepless nights. However, with far-sighted and long-term strategies, we at CERATIZIT Group have been working on securing our supply of raw materials for years now. How can we ensure that you too won’t run out of carbide in the future? To find out, please read on.

resource scarcity

Cemented carbide: a finite resource?

Carbide and the components and tools made from carbide are valuable, even over and beyond their primary life cycle, because they contain high proportions of the sought-after metals cobalt (Co) and tungsten (W). Depending on the hardness of the carbide, they have a tungsten content of between 65% and 90%, while the cobalt content can be up to 30%. The primary extraction of cobalt and tungsten from ore is very costly and energy-intensive. For example, to obtain one ton of tungsten, 250 tons of ore have to be mined and processed. Depending on the grade of cemented carbide, 1.1 to 1.54 tons of carbide can be produced from this.

 

But tungsten and cobalt are not only important for the production of carbide. The extent to which the demand for raw materials is changing in response to technological developments is impressively demonstrated at present in the mobility and energy supply industries. These two influencing variables will strongly drive the demand for the two raw materials, as well as others, in the coming years. For example, large quantities of cobalt are currently being used for the production of batteries and storage devices, not least for electromobility. It follows that if the already finite raw material reserves are also heavily in demand in other sectors, the situation for the cemented carbide sector and associated industries will become even more acute. 

Will we still be well supplied with tungsten and cobalt in the future?

Taking tungsten and cobalt as an example – if annual mine production and demand remain at today’s levels, tungsten and cobalt are estimated to be available for only the next 60 to 70 years. However, these figures can change rapidly if demand changes. For example, cobalt is used for lithium-ion batteries, which are essential for electric mobility. Thus, it is foreseeable that the demand for batteries may increase in the future, inevitably moving the red dot for cobalt in the graph below even further to the left – and its limited availability will decline even further. 

resource scarcity

The graph shows the estimated supply of various metals if demand and annual mine production remain constant.

For a long-term production strategy, it is very important to pay attention to the way in which materials are used. Since the best resources are those we do not consume or use in the first place, resource efficiency must come first. This corresponds to an economy that acts as sparingly as possible when consuming or using raw materials. The second goal should be that secondary raw materials are recovered over the product life cycle and used again. Raw materials policy must therefore become part of the market-driven circular economy.

Making efficient use of cemented carbide and its raw materials

Economical use of our natural resources is one of the central challenges of our time – both environmentally and in economic terms. Not least because the primary extraction of raw materials continues to increase – influenced, for instance, by growing world population, rising prosperity and technical advances. It is not realistic simply to increase the required extraction capacity of the mines: the costs of mining tungsten and cobalt are very high, for example in terms of land use and mining emissions. It is true that the areas taken up by mining are recultivated. Nevertheless, these negative environmental impacts remain and increase along with the increasing demand for raw materials. 

 

Discovering completely new deposits and reserves is likewise a matter for consideration, but this is not realistic in the long term either, seeing that supply is known to be not unlimited. Innovative technologies in the mining / transport infrastructure can also contribute to a better environmental balance by working on energy-saving methods and paying greater attention to ecological issues.

 

And yet, in the long run, there is no way around developing new technologies to reduce metal consumption as such. These include processes such as additive manufacturing, in which metals are built up in layers and shaped, so to speak, instead of being carved out of a large block, as has been the case in the past. Furthermore, the more sustainable use of metals is an important piece of the jigsaw, saving resources by regrinding worn tools or recycling them at the end of their life cycle. And higher productivity must also be a top priority in the design of tools – not least in the form of high-performance coatings that can contribute to enormously extended service life and enhanced performance.

What is CERATIZIT doing to help protect reserves?

Sustainability and the responsible treatment of the environment are a high priority for the CERATIZIT Group. Hence all our business decisions are strongly influenced by the basic question, ‘How can we manage our reserves and resources as sustainably as possible?’ A high proportion of secondary raw materials and the avoidance of production scrap are essential contributing factors here. To this end, the CERATIZIT Group has been able to increase its recycling rate to an outstanding 92%. 

 

In the subsequent processing, we also have our sights firmly fixed on energy savings – through optimised processes and the switch to renewable energies. Furthermore, we try to reduce rejects in production to a minimum. Depending on the process, such as the grinding of blanks for instance, the reject ratio is between 2 and 30%. We already assist our customers in the search for the most profitable and best-suited materials for the given application. It is not uncommon, for example, that steel materials can be replaced by carbide. What is the point of this? Because in many cases the latter is the better alternative in terms of wear, and thus helps to reduce material and energy consumption. We also take this into account in our product range, which is why we offer tools and adapted operating parameters for longer service life and energy savings in practice. Particularly in industries with a high proportion of machining – in aerospace technology, this can be over 90% – longer tool life brings real economic advantages.

 

Here’s what the Ceratizit Group does to protect our reserves:

 

  • 92% recycling rate within the Ceratizit Group: use of secondary raw materials and production scrap
  • Supply chain policy with high environmental and social responsibility: responsible sourcing from certified and officially audited mines
  • Minimising rejects in production 
  • Ecological production methods: energy saving in production through optimised processes and use of renewable energies
  • Long-lasting products and process parameters adjusted for maximum energy efficiency
  • Highlighting material alternatives so as to reduce wear, use of materials and energy

Social and environmental responsibility in the extraction of raw materials

If companies import raw materials from abroad, they must pay attention to the conditions under which the raw materials are extracted locally – if only out of a sense of shared responsibility for human rights, workers’ rights and environmental standards. The socially and ecologically responsible procurement of raw materials is laid down in our Code of Conduct, and our strict purchasing guidelines ensure that we do not procure any materials from conflict-prone sources. Hence the CERATIZIT Group is a supporting member of the Tungsten Industry Conflict Minerals Council (TI-CMC). This working group is an initiative of the tungsten industry to advocate for more transparency in tungsten procurement. TI-CMC compliant companies source tungsten exclusively from responsible, conflict-free sources. This includes the OECD’s Due Diligence Guidance for Supply Chains of Minerals from Conflict Affected and High Risk Areas which supports companies in their disclosure obligations, in accordance with the US Securities and Exchange Commission rule on conflict minerals.

Goals of the responsible procurement policy of the CERATIZIT Group

 

  • Minimising dependence on individual regions and suppliers
  • Procuring raw materials from sustainable sources
  • Partnership with members of the TI-CMC (Tungsten Industry Conflict Minerals Council) 
  • Standardised process for checking compliance with requirements on the part of producers

Recycling cemented carbide: ecological, sustainable and economical

In addition to the conservation of limited primary resources, one aspect is becoming increasingly important with regard to the successful protection of resources and reserves, namely recycling. For the CERATIZIT Group, this is a synonym for the responsible use of resources. In this way, the consequences of intensive mining, such as the pollution of air, water and soil as well as excessive energy consumption can be kept within bounds. The aim should therefore be a significant increase in the proportion of reused materials and secondary raw materials through carbide recycling.

 

Recycling used tungsten carbide has a much better material yield, as well as a better environmental balance: in the manufacturing process using carbide recycling, 40% of the CO2 emissions and 75% of the primary energy used can be saved as compared with manufacture relying on primary raw materials. This makes the extraction of raw materials via recycling much more efficient overall, saves large amounts of energy and protects the environment.

resource scarcity

The recycling of cemented carbide is an important source of tungsten and cobalt, and in this respect is much more productive than ore. Depending on the carbide grade, the tungsten content can be between 65 and 90%, that of cobalt as much as 30%.

Recycling of used cemented carbide minimises energy consumption

resource scarcity

The advantages are obvious: recovering tungsten and cobalt from secondary raw materials through recycling is extremely efficient and sustainable in terms of energy and environmental management.

The processing of tools and secondary raw materials is an important building block for sustainability, and closes the cycle all the way through to the end product. What is a complex process should be made as simple as possible for our customers. That is why we take care of all aspects of the recycling process: we provide you with quantity-specific collection containers and transport solutions and buy the carbide back from you based on the current day’s price. In order to keep on increasing the recovery rate of the secondary raw materials, we continuously optimise the recycling processes in collaboration with our project partners.

We are happy to work with you to optimise the cycle from sale to scrap return, from production to repurchase in a long-term partnership. Become part of our sustainable material cycle! If you have any further questions, our experts are always at your disposal.

  • Recycling

    Recycling

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Worn out does not mean unusable: regrinding as an economical alternative

resource scarcity

If the performance of a tool deteriorates, it can usually be given a ‘new lease of life’: regrinding comes before recycling!

Even the highest-quality tools eventually reach or overstep the limit of endurance. What then? Instead of transferring them directly to the recycling process, it still makes sense to have some milling cutters and drills professionally reground. The advantages are obvious: the total cost of ownership can be reduced, you save on storage and capital costs and benefit from higher availability. And at the same time, you make a contribution to the environmentally friendly use of primary resources. 

resource scarcity

The regrinding process can vary depending on the type of tool, its condition and the required repair as well as other factors.

Through our professional regrinding service with original geometries and coatings, we restore performance to its original state so that the heavily worn tools continue to meet all quality parameters in the best possible way. As a result of this process, even tight tolerances and surface finishes, including coatings, can be restored – even with repeated regrinds! 

 

Whether it is a question of drills, rotary cutter blanks, milling cutters, reamers or many other carbide products – they are all suitable candidates for regrinding. When designing our tools, careful consideration is given so that when they are reground, the performance is the same as the original new tool. In the regrinding process, the geometry and in some cases (depending on the product) the coating are reconditioned to their original condition. Of course, the performance tests of reground tools are subject to the same procedure as that of a new tool.

resource scarcity

Overhaul of worn tools offers another alternative

If regrinding is no longer successful, but the tool is still in good condition overall, there is still the option of reconditioning. In this way, intensively worn surfaces can be reworked, refurbished or repaired. In the case of complete assemblies, it is advisable to dismantle them and replace the worn carbide components.

So that we can remain at the cutting edge in the world of tomorrow

As you can see, the horror scenarios mentioned at the beginning – shortage of carbide supply, inadequate replenishment of tools and wear components – do not have to become a reality. At CERATIZIT we have made sufficient provisions for this and, thanks to forward-looking planning and sophisticated recycling methods, we can still deliver when stocks are empty elsewhere. And the best thing about it: we are saving the environment, and at the same time reducing your expenses.

Have we sparked your interest in the sustainable handling of resources and shown you a few interesting options? Would you perhaps like to learn about news worth reading on the subject of cemented carbides and their almost infinite possibilities in the future? Follow our blog, which we are constantly expanding and maintaining. You can also become a fan and follower on social media (FacebookLinkedIn). There you will find information tidbits that will give you a quick overview. We look forward to seeing you there!