Description of need
Non-grain-oriented (NGO) steels, used in electric motors and generators, have specific magnetic and mechanical properties that make them valuable in certain applications. However, they are often mixed with other ferrous scrap in recycling streams, leading to downgrading and loss of material value.
Moreover, newer varieties of NGO steels as they enter the scrap stream may not always be welcome by melt shops within commonly traded recycled steel grades.
There is a critical need for technologies to efficiently identify and separate NGO steels, enabling recyclers and steel mills to recover and monetize these materials for high-value applications.
Problem severity (1-10)
8 – Mixing NGO steels with other ferrous scrap lowers the quality of recycled steel and limits its use in applications requiring specific properties. This results in lost economic opportunities and inefficiencies for recyclers and steel mills, particularly as demand for high-performance steels increases.
Who has this need
- Scrap metal recyclers managing ferrous streams
- Steel mills producing specialized steel products
- Manufacturers of electric motors and generators seeking recycled NGO steel
- Automotive and renewable energy sectors reliant on NGO steel
- Policy makers promoting advanced recycling technologies and material circularity
Total addressable market (TAM)
The TAM is estimated to be $2-4 billion annually, based on:
- Global NGO steel production (~20 million tons/year).
- Price premiums for NGO steels over standard ferrous scrap ($50-150 per ton).
- Increasing demand for NGO steels in the electric vehicle, renewable energy, and industrial equipment markets.
Solutions today, and their shortcomings
- Manual sorting: Rarely done due to difficulty in visually identifying NGO steels; inefficient and expensive.
- Magnetic separation: Effective for general ferrous materials but cannot differentiate NGO from other steel types.
- X-ray fluorescence (XRF) and laser-induced breakdown spectroscopy (LIBS): Emerging technologies that can differentiate steel grades but remain costly and slow for high-throughput operations.
- Bulk shredding and melting: Treats NGO steels as generic scrap, leading to loss of specific material properties and economic value.
- OEM-specific recycling programs: Limited in scale and application to specific industries or products.
Potentially relevant capabilities
- Advanced sensor-based sorting technologies for precise identification of steel grades (e.g., LIBS, XRT, and hyperspectral imaging).
- AI-driven systems for scrap stream analysis and process optimization.
- Portable identification devices for NGO steel in mixed streams.
- High-throughput automated systems for separating NGO steels at scrapyards or processing facilities.
- Collaboration with steel mills to establish material specifications and recovery targets.