Samsung Boosts Battery Procurement Through Cobalt Recycling

Samsung Electronics is strengthening its procurement practices and reshaping its supply chain with a new circular battery initiative focused on cobalt recycling.

By reclaiming cobalt from production scrap in Vietnam, the company aims to reduce waste, improve sustainability and respond to increasing demands for transparency and ethical sourcing across technology and clean energy sectors.

This marks a key shift in how cobalt is sourced and reused, especially in a sector where responsible procurement of critical minerals is under growing scrutiny.

Integrating circularity into cobalt procurement

Cobalt, a key material in lithium-ion batteries, plays an essential role in improving energy density, maintaining battery stability and preventing overheating.

These properties make it indispensable in the production of smartphones, electric vehicles and energy storage systems.

However, cobalt mining – mostly concentrated in the Democratic Republic of the Congo – carries environmental risks such as land degradation and water contamination, alongside social concerns including unsafe labour conditions and human rights violations.

With the launch of a circular battery supply chain, Samsung Electronics responds to these challenges by shifting to a closed-loop system that recycles cobalt from discarded or defective batteries.

The process begins at the company’s production facilities in Vietnam, where approximately 200 tonnes of battery waste is generated each year.

Instead of disposing of this material, Samsung now extracts cobalt from the manufacturing scrap and reintegrates it into new batteries.

Youngmin Kim, from the Circular Economy Lab within the company’s Global Environment, Health and Safety Office, says: “Samsung’s Vietnam facilities are among those that generate the highest volume of waste batteries, including defective units from the manufacturing process and batteries recovered from a factory that repairs Galaxy phones traded in from the United States.

"Our goal was to create a system that would allow us to recycle these resources and reintegrate them into our products.”

The Galaxy S24 was the first model to use recycled cobalt.

In the Galaxy S25, cobalt recovered during battery manufacturing is reused in the next generation of batteries.

This approach minimises Samsung’s reliance on newly mined cobalt and enables the company to localise procurement, cutting emissions and shortening its sourcing routes.

Supply chain impact and recycling technology

The battery circularity strategy improves traceability across the supply chain by limiting the need for raw material extraction and increasing use of recycled content.

Through the use of advanced recycling technology, Samsung processes used batteries into a powdered material known as “black mass.” This substance is then refined into high-purity cobalt, which is used to create new cathode materials for batteries.

Youngmin explains: “The key to extracting high-purity cobalt lies in technology. Through our Circular Battery Supply Chain, we have successfully recovered and utilised over 90% of the cobalt from the discarded batteries that have been collected.”

The integration of this recycled cobalt does not compromise battery quality.

Sangcheul Lee, from the Battery Group in Samsung’s Mobile eXperience Business, says: “Cobalt does not degrade with battery use, meaning it can theoretically be recycled indefinitely.

"Recycled cobalt and newly mined cobalt are virtually identical – so much so that the difference is indistinguishable in the manufacturing process.”

This ability to maintain battery performance with recycled inputs allows Samsung to reduce environmental and social risks while continuing to meet production standards.

By embedding circularity into its procurement methods, the company enhances sustainability throughout its technology supply chain.

Procurement transformation and ESG progress

This circular battery chain is part of Samsung’s broader resource efficiency and procurement strategy aimed at supporting its ESG goals.

By 2030, the company plans for 50% of plastic parts in its DX (Device Experience) products to be made from recycled plastics, with the long-term aim of reaching 100% by 2050.

In 2023 alone, Samsung collected 599,153 tonnes of electronic waste and used 157,939 tonnes of recycled resin, achieving a 25% utilisation rate.

These actions contribute to the company’s overall aim to reduce its carbon footprint and increase transparency in materials sourcing.

Samsung is also experimenting with other forms of recycled materials.

With the Galaxy S25, wafer trays discarded after semiconductor manufacturing are repurposed into plastic used in smartphone side and volume keys. Youngmin notes: “With the Galaxy S25, we’ve also reached another significant milestone in resource circularity – wafer trays discarded after semiconductor manufacturing have been repurposed into a plastic used in the side and volume keys.”

By aligning procurement decisions with sustainability goals, Samsung is developing systems that support resource circularity across more product lines.

The company aims to show that technology manufacturing can move toward ethical material sourcing without compromising product performance or quality.

The combination of closed-loop cobalt recovery, localised recycling operations and transparent supply chain tracking highlights a new procurement approach for critical minerals in consumer technology.

Samsung’s circular battery chain does not just reduce waste – it sets a new framework for supply chain sustainability in a high-demand industry.

Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.

Discover all our upcoming events and secure your tickets today. ​​​​​​​

Procurement Magazine is a BizClik brand.