Latin America and the Caribbean could recover US$ 84 billion by 2035 by recycling its clean electricity infrastructure

Quito.- The region’s progress toward renewable sources, which accounted for 67.4% of electricity generation in 2025, opens a new front of attention: the management of waste from its own infrastructure. Although the boom in solar and wind technology began just a decade ago and most of the current equipment has not reached the end of its useful life, premature failures and technological upgrades are accelerating the disposal of panels, wind turbines, and batteries.

This scenario has led several countries to design plans, programs, and regulations for the recycling of reusable components. The goal is to mitigate environmental impacts throughout the life cycle of these technologies, preventing heavy metals, plastics, and corrosive or toxic substances from affecting the soil, air, and water.

The Technical Note from the Latin American and Caribbean Energy Organization (OLADE) explains that the generation of this waste constitutes a circular economy opportunity whose potentially recoverable economic value could reach US$209 billion by 2050, through recycling, reuse, and material recovery strategies. This perspective broadens the sectoral dialogue, incorporating the need to evaluate the economic potential of secondary resources rather than analyzing only the physical presence of the waste.

Currently, there are 150 million solar panels in operation in the region and 16,000 wind turbines which, together with the accelerated growth of batteries and solar and wind energy, allow us to project the magnitude of the volumes of materials accumulated by the middle of the century:

• 81 million tons of total materials will be incorporated into transition technologies.
• 36 million tons will correspond to steel, equivalent to 63% of the current annual production of this metal in the region.
• 4 million tons will be copper, a volume close to 40% of the regional annual production.
• 10 million tons will correspond to aluminum, almost triple the current annual production of Latin America and the Caribbean.

The study indicates that recovering these components would reduce the demand for new extractive activities, decrease emissions associated with mining, and strengthen the security of supply for resources considered critical globally.

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Artificial intelligence in the circular economy

The technical note points out that artificial intelligence acts as a key enabler in the management of these assets. Digital tools and predictive systems allow for continuous monitoring of devices, which facilitates efficient maintenance scheduling, extends the useful life of equipment, and automates its classification for refurbishment or recycling processes.

In the specific case of lithium batteries for electromobility, algorithms analyze the operational history to determine when a module can be destined for a second useful life in stationary storage applications. This alternative extends the device’s total cycle and postpones the need for its final management.

An industrial opportunity for the region

OLACDE argues that the circular economy opens an opportunity for the region’s industrial development. The recovery of critical materials could reduce dependence on virgin raw materials, decrease strategic imports, create new regional value chains, generate specialized employment, and strengthen supply security for the future energy sector.

However, the document warns that the development of this industry will require the strengthening of specific regulatory frameworks, extended producer responsibility schemes, traceability systems, and reverse logistics, given that these capabilities are still incipient in most countries in the region.

The sustainability of the sector does not end with the installation of wind farms, photovoltaic plants, or batteries; it will depend on the region’s ability to efficiently transform technological waste into new productive resources.