Will the New Infrastructure Bill Cause Precious Metal Prices to Soar?

Recycle Precious MetalsRecycling and RefiningSmelting and Refining
Written By Barry Lenson

Last month the U.S. Senate passed a $1.2 billion Infrastructure Investment and Jobs Act. As you have probably heard, this bill (also called the Invest in America Act) has something to do with recycling. But what exactly? And exactly how could it affect precious metals?

We took a close look at the bill and discovered that it has another bill folded into it. This bill-within-a-bill is called the Recycle Act. You can read its complete text HERE. We did and learned that it is almost entirely about recycling batteries.

To summarize, the bill requires the Environmental Protection Agency (EPA) to establish a program to award grants to improve the effectiveness of residential and community recycling programs through public education and outreach. The bill specifies that the EPA's review of its federal procurement guidelines for purchasing certain recycled materials and items made with such materials must occur at least once every five years. And the bill encourages the creation of recycling programs in Native American communities.

What this Means for People who Recycle Precious Metals

It means that the government will take a more active role in facilitating the recycling of batteries that are used in electronic devices of all kinds – such as those that are used in cellphones and other electronic devices. In time, this will also mean that the government will take a bigger role in recycling the larger batteries that are used in electronic and hybrid vehicles. That will probably mean that the government will become more involved in setting up programs to collect batteries that were used in cars and trucks. Because the extremely widespread use of batteries in vehicles is still in the future, don’t expect to see a large and viable program to collect and recycle them any time soon.

But an Uptick in Recycling Batteries Is About to Happen

Even the small batteries that are used in cellphones, remotes, and other small electronic devices contain trace amounts of some (or all) of the following materials that can be recycled:

  • Lithium, a rare earth metal that is used in lithium batteries.

  • Nickel and cadmium, metals that are used in nickel-cadmium (NiCad) batteries.

  • Gold, which is found in small amounts in the contacts and circuit boards that can be used in some batteries and battery chargers.

  • Copper, a non-precious metal that is also found in batteries. Although copper is not a precious metal, it is currently selling for about $3.00/ounce. Don’t forget, copper wire (although it is not contained in batteries) is easy to find – and at $3.00/ounce, it is well worth collecting.

  • Aluminum and plastic, two materials that are often part of the casings and other structures that are part of batteries.

The Bottom Line: Making Money in These Materials Comes Down to Quantity

If you have one cellphone – even if you got it for free – you are not going to make a lot of money if you recycle it. But if you can collect hundreds of them for free (or at low cost), your efforts might turn out to be worthwhile. 

And if the Infrastructure Bill becomes part of American life and recycling becomes a bigger and bigger part of the way we Americans live, it will become increasingly possible to make money by collecting batteries and recycling the materials they contain. 

You can prepare today by collecting old cellphones, which are plentiful. If you are active in a charity, school, or religious institution, you can also start a drive to collect old cellphones that you can recycle later if demand for them and their components increases.

Want to know more about recycling precious metal scrap? Call Specialty Metals Smelters and Refiners at 800-426-2344 to make a plan with one of our precious metal recycling experts.

Barry Lenson
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