Invest-NL Analysis Reveals Critical Supply Chain Gaps in Dutch Consumer Electronics
Amsterdam, Thursday 5 February 2026
A strategic report highlights that one in three small electronic devices ends up in residual waste, identifying this sector as the fastest-growing obstacle to meeting 2050 circular economy ambitions.
Linear Chains in a Circular Ambition
The analysis paints a concerning picture of the current state of Dutch electronics lifecycles. Despite the national objective to achieve a fully circular economy by 2050, the supply chain for small consumer electronics—ranging from smartphones to household appliances—remains predominantly linear [1]. In 2024 alone, approximately 160,000 tonnes of these electronic devices were introduced to the market, yet only 15 per cent of this volume comprised secondary materials [1]. This heavy reliance on virgin resources underscores a significant disconnect between policy ambition and industrial reality, particularly in sectors reliant on High-Tech Systems and Materials (HTSM).
Critical Material Leakage
The report identifies the disposal phase as a primary point of value loss. Nearly one in three devices ends up in residual or industrial waste streams upon disposal, effectively removing them from the recycling loop entirely [1]. This ‘leakage’ represents a strategic loss of critical raw materials essential not only for consumer goods but also for advanced applications in robotics, quantum computing hardware, and defence-related manufacturing. Guy de Sévaux, the theme lead for Biobased & Circular Economy at Invest-NL, notes that value is leaking on a large scale, emphasising that the research pinpointed exactly where the chain is stalling [1].
Benchmarking Against Industrial Recovery Success
While consumer electronics struggle with low recovery rates, other sectors within the Netherlands demonstrate that advanced circular infrastructure is achievable. For instance, the recovered carbon black (rCB) market—vital for the energy transition hardware sector through its application in tires and polymers—has seen significant uptake. In 2023, the Netherlands achieved a 97 per cent recovery rate for end-of-life tires, with 45 per cent of this volume processed via advanced pyrolysis technologies [2]. This success suggests that with adequate infrastructure, high recovery rates for complex material streams are viable.
Investment Trends in Recovery Technology
The economic case for circular technology is strengthening, as evidenced by the European recovered carbon black market, which was valued at USD 65.01 million in 2025 and is projected to reach USD 1.01 billion by 2034 [2]. The Netherlands is projected to hold a prominent share of this market during the forecast period, supported by initiatives such as the covenant signed by 15 companies to scale rCB use in polymers by 2027 [2]. Furthermore, the commissioning of Europe’s first ISCC Plus certified rCB plant by Black Bear Carbon in Twente in 2023 highlights the role of domestic venture capital in scaling industrial recycling capabilities [2].
Strategic Capital for Dual-Use and Battery Tech
Addressing the gaps in the electronics supply chain will likely require similar capital allocation toward dual-use technology and battery material recovery. Reflecting this global shift toward circularity in energy storage, HPQ Silicon recently increased its equity stake in Novacium SAS to strengthen its exposure to battery materials and hydrogen systems [3]. As smartphones and laptops—identified as key waste streams by Invest-NL [1]—are dense with battery-grade materials, integrating such advanced recovery technologies is crucial for securing the supply chains needed for the energy transition.
The Path to System Change
To bridge the gap between the current linear reality and the 2050 circularity goals, Invest-NL is calling for a system change that moves beyond analysis to execution [1]. The state investor is inviting producers, retailers, and financiers to co-develop solutions that make circularity both scalable and investable [1]. Without immediate intervention to improve the recycling rates of small electronics, the Netherlands risks continued depletion of the strategic materials required for its high-tech and defence manufacturing sectors.