Many machines rely on electric motors. As the power source for a wide range of mechanical equipment, a large number of end-of-life motors are generated every year. Motors contain a variety of metallic materials, such as copper wire, aluminium and magnetic casings. Motors with specialised designs may also contain rare earth elements. These materials command high prices, meaning that the recycling of end-of-life motors offers excellent profit margins. End-of-life motor recycling is a profitable venture. Today, we will provide a detailed analysis of the profit potential.
Profit Margins in Scrap Electric Motor Recycling
The profit margins for scrap electric motor recycling are somewhat complex. The proportion of copper recovered after dismantling varies significantly between different motor models. This requires operators involved in motor recycling to have a certain level of understanding of motors, to avoid paying excessively high prices that would reduce profits. Typically, the copper yield from scrap motors is approximately 8–10 %.
Take a motor weighing 20 kg as an example. There are approximately 50 motors per metric tonne. If the price of scrap iron is approximately US$900 per metric tonne and the price of scrap copper is US$12,000 per metric tonne, then the recycling price per metric tonne must not exceed US$1,860. It should be noted that the prices of scrap iron and scrap copper are subject to market fluctuations. The copper in scrap motors consists of enamelled wire, and its recycling price may be lower than that of standard copper cable.
Profit analysis: The value of copper recoverable from one metric tonne of electric motors is 12,000 × 0.10 = 1,200 US dollars. The value of iron recoverable from one metric tonne of electric motors is 900 × 0.9 = 810 US dollars. On the market, the price of one metric tonne of scrap electric motors is approximately 1,400 US dollars. Therefore, the profit per metric tonne of scrap electric motors is 2,010 – 1,400 = 610 US dollars.
Note: The above figures are for reference only; actual prices may vary in line with market fluctuations.
Factors Affecting Profits from Electric Motor Recycling
- Copper content determines the base value: Copper wire accounts for approximately 8–10 % of standard industrial scrap motors. In high-efficiency motors, this figure can reach 15–25 % or more. Consequently, there can be a significant difference in profit margins.
- Dismantling processes affect profits: The overall recycling price is typically only 60 per cent of the value of the separated copper and iron after dismantling. However, manual dismantling is inefficient. It is therefore recommended to use a electric motor recycling machine for dismantling. With manual assistance, over 20 units can be dismantled per hour.
- There are significant differences between current mainstream dismantling machines in terms of the integrity of the copper windings and the recovery rate of the iron cores. This is the primary source of the price difference.
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