Itochu, ERI to set up Japan venture to recycle electronics

By Yuka Obayashi

TOKYO, March 24 (Reuters) - Trading house Itochu 8001.T said on Tuesday it would form a Japanese venture with Electronic Recyclers International to recycle electronic equipment.

Itochu also plans to buy a stake in ERI, but did not disclose details of the investment.

Japan is ramping up resource-recycling efforts as rising geopolitical risks increase the need for domestic recycling systems to recover precious metals and other materials used in electronic devices.

"As Japan's recycling rate for electronic devices is only around 20%, there is still significant room for growth," Koichiro Nishimura, CEO of Itochu's used mobile device unit Belong, said.

"Recovering and recycling Japan's 'urban mines' is crucial to reducing environmental impact and promoting sustainability," he added.

Urban mines refer to the valuable metals and minerals that can be recovered from discarded products and waste within cities rather than mined from natural deposits.

ERI operates one of the largest IT asset disposal and e-waste recycling businesses in the United States, offering one-stop services from data erasure and advanced shredding of end-of-life IT equipment to resale, recycling, logistics and regulatory compliance.

Japan's urban mines are estimated to contain 6,800 tons of gold, so there is plenty of growth potential," Nishimura added.

The global IT asset disposal market is estimated at about $18.4 billion in 2024 and is expected to reach $26.6 billion by 2029, according to Itochu.

In Japan, the market is projected to expand from about $1.07 billion in 2024 to $2.14 billion by 2033.