CASE STUDY 2 Reusing rare earths through hard disk drive recycling – Western Digital, Microsoft, Critical Materials Recycling and PedalPoint Recycling127 PRIORITY ACTIONS: SUPPLY CHAIN ENGAGEMENT POLLUTION AND WASTE Western Digital, in collaboration with Microsoft, Critical Materials Recycling and PedalPoint Recycling, has developed a recycling initiative that transforms end-of-life hard disk drives (HDDs) into a valuable source of critical materials. The pilot processed ~50,000 lbs of drives and achieved a ~90% recovery of rare-earth elements (e.g. neodymium, praseodymium, dysprosium) and ~80% overall material recapture (including other metals such as gold, copper, aluminium, steel). Using an acid-free dissolution process, the programme not only avoids the hazards of traditional acid-based methods but also delivers a 95% reduction in greenhouse gas emissions compared to virgin mining. By diverting ~50,000 lbs of HDD waste from landfills and directing high-quality materials back into supply chains, the initiative improves supply resilience, minimizes biodiversity impacts and reduces water and land use associated with mining. Financially, recycled metals can reduce costs compared to procuring virgin metals. For example, didymium oxide is a mixture of praseodymium and neodymium that can see a reduction in cost of 43%, from $130/kg to $73/kg, when using recycled metals rather than virgin metals. With its scalable, economically viable approach supported by a reduced climate footprint and lower raw material costs, this pilot highlights a replicable, nature-positive model for global tech value chains. Reusing rare earths through hard disk drive recycling cuts waste and cost GHG emissions reduction Rare-earth elements recovery Overall material recaptureReduction/recovery Cost savings/year compared to virgin metalsAcid-free dissolution recycling process 95% ~90% ~80% for didymium oxide43% Nature Positive: Role of the Technology Sector 46

Nature Positive Role of the Technology Sector 2025