Material Issues in Manufacturing Electronics - C3P 2009/Presentations/General...

Material Issues in Manufacturing ElectronicsNASA/C3P

International Workshop on Environment and Alternative EnergyInternational Workshop on Environment and Alternative EnergyGarching, November 10th 2009

Klaus HieronymiChairman of the Environmental BoardHewlett Packard Europe, Middle East and Africa

© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

A very common view in the IT-Industry:

Raw materials …. who the hell cares where they are coming from ?coming from …?

.. we are not buying any….

.. we buy parts, assemblies, complete products …

11/30/2009© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

… this is going to change …

Why ?y


StructureStructure

•About HP

•Metals in Electronic Manufacturing today•Metal supply / prices in the future•Recomendations for the E-Industryy•New challenges•Control•Control

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Commercial Break .. Don't walk away ..

F t 9 U S

Simplifying technology experiences around the world

• Fortune 9 – U.S.Fortune 32 – Global

• 321,000 employees

• 145,000 sales partners

• 210,000 service partners

88 000 t il l ti• 88,000 retail locations

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About HP HP’s powerful portfolioHP s powerful portfolio

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About HP Global citizenship at HP

Corporate accountability

Design for environment

Supply chain responsibilityCommunity investment

Global citizenship at HP

accountability and governance

environment responsibilityinvestment and involvement

• Ethics• Privacy• Supply chain

• Products• R&D• Operations• Supply chain

• Investment• Volunteerism• Public policy• Stakeholder

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• Supply chain • Stakeholder relations

About HP ‘Green’ Awards and RecognitionGreen Awards and Recognition

Design for Recycling Award from Institute of Scrap Recycling Industries

Recycling Council of British Columbia Private Sector

Recognition Award

PRMA Award for Environmental

Performance at HP Aguadilla facility

Named to Fortune magazine’s list of 10 Green Giants

Ranked 8th on list of the 100 Greenest Companies

Achievement Awards, National Performance Track and Green

P P t

Corporate Leadership Award from Recycling Council of

Alberta

Association Agency Brazil de Segurança Award of

Washington State Recycling Association Recycler of the

Y

Named to Top 10 Green Companies List

2006 and 2007 Environmental Printing Award from PrintActionPower Partners AlbertaEnvironment Year Award from PrintAction

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Honorable Mention in Mexico’s SEMARNAT Ecological Merit Award

Recycling Council of Ontario Platinum Waste Minimization

Award

Demand Response Award in California Flex Your

Power Program

Winner of Best Sustainability Report Award for Global

Citizenship Report in 2005 and 2006

2007 AF&PA Business Leadership Recycling Award from American

Forest & Paper Association

The IT industry needs to take care about raw materials ?

the IT industry needs to take care… the IT industry needs to take care about raw material…

•Higher demand higher pricesg g pCompetition between industriesNGO’sControlControl


End of commercial break ..


… lets focus on metals today..


The IT industry needs to take care about raw materials ?Electronics have a significant impact on metals demand

world mine production*

% of mine productionproduction production

Silver Ag 20,000 30%Gold Au 2,500 10%Palladium Pd 215 15%Platinum Pt 220 6%Ruthenium Ru 30 20%Copper Cu 16,000,000 28%Tin Sn 275 33%Antimony Sb 130 50%Antimony Sb 130 50%Cobalt Co 58,000 19%Bismuth Bi 5,600 16%

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Selenium Se 1,400 17%Indium In 480 79%

* rounded, USGS Mineral Commodity Summaries 2007


Due to:

Raw Material prices will increase

Due to:

• DemandDemand• Natural Resources• SubstitutionSubstitution

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The IT industry needs to take care about raw materials ?Demand for Raw Materials will increase

World Population Popolation with income to buyWorld Population Popolation with income to buy electronic products / cars

1952 2.2 0.32009 6.7 3.02039 9 0 4 52039 9.0 4.5

Billion

Demand for raw materials will increase

b ??% i 20

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... by ??% in 20xx


Example: Copper

Cost for production will grow

Example: Copper

Minimum Metal Content in Ore *

1900 7 %

1980 2 %

2009 <1 %* for profitable mining

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Energy Cost are a major element now....

The IT industry needs to take care about raw materials ?Some metal prices rebound ….

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The IT industry needs to take care about raw materials ?New products need more rare metals

•New Products require more rare materialsq(Tantal, Germanium, Tellure, Indium, Yttrium ...)

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The IT industry needs to take care about raw materials ?Technology

•New Products require more rare materialsq(Tantal, Germanium, Tellure, Yttrium.....)

•Other industries will compete for the same praw materials as the Electronics Industry

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What do all these carsWhat do all these cars have in common ?

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a 400 700 kg battery... a 400 - 700 kg battery ...equivialent of q

2,000 – 3,500 laptop batteries

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The IT industry needs to take care about raw materials ?Demand

Goal of the new German Government:

1 mil electrical cars by 2020by 2020

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By 2020, 9% of the y ,cars ( 7 mil) will be

powered by electricity.powered by electricity. Most of them by

batteries of the samebatteries of the same kind as used for

laptops11/30/2009

laptops.Source: http://www.mckinsey.de/html/presse/2009/20090901_elektromobilitaet.asp


7 mil electrical cars require a similar

amount of materials toamount of materials to produce batteries for

7,000,000,000 Laptops11/30/2009

, , , p p400kg/car, 0.4 kg/laptop

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Many more industries are ycompeting for the same raw

materials (e.g. Solar <-> Flatmaterials (e.g. Solar Flat Screens)

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The IT industry needs to take care about raw materials ?Strategic approach

•Substitution- use other materials (e.g. plastics vs metals)- ‚design out‘

recycling- recycling

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Technology DevelopmentsTechnology Developments

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HP Lab project: replace copper lines with optical linesSubstitution

.... within computers / in chips.......

Copper that’s never mined…

2012: Servers2012: ServersAnnual savings: 13 TeraWatt hours of electricity

2017 S Chi2017: Servers + ChipsAnnual savings: 110 TWh of electricity

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Reduce the need to mine, smelt copper


In the midtterm raw material prices will

Raw material prices

In the midtterm, raw material prices willincrease to a level of > 2008

By then, collecting all e-waste will be a profitable business which will attract psmall entrepreneurs

... the mine above ground ...

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The IT industry needs to take care about raw materials ?Recycling

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The IT industry needs to take care about raw materials ?EU

approx. 1,850,000 t have been collected in 2008 in the EU

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= approx. 30% of what has been sold

The IT industry needs to take care about raw materials ?Worldwide

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< 10% of Electronics sold are recyled

Overview of States With LawsME

MNOR

WA

NH

VT

MA

NYCWV

MDCT

VA

IL

MO

MI

CA

RI

VT

NJ

IN

VA

NCOK

TX

MO

AR

Percentage of Population Covered by E waste Law

TX

Covered by E-waste Law

% Covered,

53.9%

% Not Covered,

46.1% States with E-Waste Legislation+ Canada EU Switzerland Norway Japan Korea China

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+ Canada, EU, Switzerland, Norway, Japan, Korea, China (not enforced yet), Australia, Mexico, Brazil, ....


83% l d l i b

Recycled plastics

HP Deskjet D2545 Printer - 83% recycled plastic content by weight

-100% of the outer casing and tray t d f l d t tparts made from recycled content

- ENERGY STAR® compliant, power consumption decreased by 40% (from previous Deskjet models)previous Deskjet models)

- Packing and storage efficiency improved by over 28%

More than 70 percent of ink cartridge- More than 70 percent of ink cartridge is recycled content from used HP cartridges collected through HP Planet Partners

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The society needs to take care about raw materials ?Side effects

… this sculpture from Henry Moore, worth approx. 400,000 €, has been stolen for a scrap value of 30,000 €

The IT industry needs to take care about raw materials ?Consequences for you

.... in 2030, you might get a new computer only if you return an old one .....

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the IT industry needs to take care… the IT industry needs to take care about raw material…

•Higher demand higher pricesg g pCompetition between industriesNGO’sControlControl


(No blood on my Cellphone)

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(No blood on my Cellphone)

The IT industry needs to take care about raw materials ?“Conflict Minerals”

"Kids in Congo were being sent down mines to die so that kids in Europe and America could kill imaginary aliens in their living rooms “could kill imaginary aliens in their living rooms,

-Oona King, ex British Parliament member-

C D ti R bli C ll h f t d t ti d d thCongo, Democratic Republic: Cell phones, forest destruction and death

Could anyone imagine that cell phones are tainted with the blood of 3.2 million deaths since 1998? Also, that the same thing happens with some children's video games?

In the case of these new high techs, it is Coltan that is at stake --

C lt (T t li )•Coltan (Tantalium)

•Gold

•Tin

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•Cobalt

•(Diamonds)

The IT industry needs to take care about raw materials ?Issues:

L b di i•Labour conditions

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The IT industry needs to take care about raw materials ?Issues:

L b di i•Labour conditions

•Profits used to finance Civil Wars

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The IT industry needs to take care about raw materials ?Involving the Big Brands

Because the small companies involved in mining / trade

do not care, we are approaching the big names.

Companies who have a reputation / image to loose

NGO Representative

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The IT industry needs to take care about raw materials ?Challenges

•Some amounts from conflict areas are very small (Gold <5%)

•Minerals are smuggled to ‚clean countries‘

•‚Big Names‘ do not buy minerals / metals

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The IT industry needs to take care about raw materials ?Purchase of minerals / metals (example: Gold)

ODM (e.g. Flextronics, Jaybill, Foxcon)

Complete Products

loaded‘ Boards‚loaded BoardsSubassembly Supplier

‚blank‘ BoardsBoard Manufacturers

Gold Cyanite

Gold Grain‚ Galvanik Salt‘ producers

Board Manufacturers

Metal Traders (e.g. UBS, LME)

Gold GrainRefineries

„Blood“ Gold

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The IT industry needs to take care about raw materials ?Purchase of minerals / metals (example: Gold)

J llJewellery

ODM (e.g. Flextronics, Jaybill, Foxcon)

Complete Products

loaded‘ Boards‚loaded BoardsSubassembly Supplier

‚blank‘ BoardsBoard Manufacturers

Gold Cyanite

Gold Grain‚ Galvanik Salt‘ producers

Board Manufacturers

„Blood Gold“

Metal Traders (e.g. UBS, LME)

Gold GrainRefineries

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The IT industry needs to take care about raw materials ?Control of minerals / metals

Chinese Primary Productioni l ti t l b l d tiin relation to global production

Steel 40%Magnesium (metal) 86%Molybdenum 29%Molybdenum 29%Rare Earth Metals 97%Silver 12%Tin 42%Tin 42%Tungsten 76%Vanadium 32%Yttrium 99%Indium 58%Bismuth 52%Gold 13% (south Africa 11%)

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Lithium 12%Copper 6%

The IT industry needs to take care about rawThe IT industry needs to take care about raw materials ?

The answer is certainly: yesThe answer is certainly: yes !

We need to include ‚raw materials‘ intoour design & supply chain strategies

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Thank you for your attention !y [email protected]

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Material Issues in Manufacturing Electronics - C3P 2009/Presentations/General...

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