The electrical cable recycling business has emerged as one of the most lucrative and environmentally essential sectors within the global circular economy. In 2025, the market for wire and cable recycling is valued at approximately $5 billion, with the broader copper scrap market expected to reach $148 billion by 2034.1
Driven by the surge in electric vehicles (EVs), 5G infrastructure, and renewable energy grids, the demand for recycled copper and aluminum has never been higher.2
1. Why Cable Recycling? The Business Case
Traditional mining is energy-intensive and environmentally taxing. In contrast, recycling copper uses roughly 85% to 90% less energy than primary production.
- High Material Value: Cables are “urban mines.” They contain high-purity copper (often 99% pure in “Bare Bright” grades) and aluminum, both of which retain their properties indefinitely through recycling.
- Dual Revenue Streams: Beyond metals, the plastic insulation (PVC or PE) can be granulated and sold to plastic manufacturers, minimizing waste and maximizing profit.
- Regulatory Support: New 2025 international regulations, such as the Basel Convention amendments, are tightening controls on e-waste, incentivizing domestic recycling facilities and “green” certified processors.3
2. Core Business Models
Startup costs can range from $10,000 for a small collection service to over $300,000 for a full-scale processing plant.
| Model | Investment | Primary Activity |
| Collector / Broker | Low ($10k – $50k) | Sourcing scrap from construction sites/mechanics and selling to larger yards. |
| Specialized Processor | Medium ($100k+) | Using “wire strippers” or small granulators to produce clean copper chops. |
| Industrial Facility | High ($250k+) | High-volume shredding, magnetic separation, and refining for industrial buyers. |
3. The Recycling Process: Step-by-Step
To achieve the “99% purity” that premium buyers demand, the process must be precise:
- Collection & Sorting: Categorizing cables by grade (e.g., household wire, industrial power cables, or data cables).
- Pre-Shredding: Large cables are broken down into manageable 2–4 inch pieces.
- Granulation: The shredded wire is ground into fine “chops.”4
- Separation:
- Magnetic Separation: Removes any steel or iron casing.5
- Air/Gravity Tables: Uses weight differences to separate heavy metal particles from light plastic “fluff.”
- Electrostatic Separation: High-tech sensors extract the finest metal dust from plastic waste.6
4. Essential Equipment for 2025
Modern facilities are increasingly adopting AI-powered sorting to improve efficiency.7
- Cable Strippers: For thick, high-voltage industrial cables.8
- Wire Granulators: The workhorse of the plant; converts mixed wire into copper “sand.”9
- Magnetic & Eddy Current Separators: Vital for removing ferrous and non-ferrous impurities.10
- Dust Collectors: Necessary to meet EPA and local environmental health standards.11
5. Key Challenges & Success Factors
- Price Volatility: Copper prices fluctuate based on global markets (LME). Successful businesses use “hedging” or quick turnover strategies to mitigate risk.
- Sourcing Scrap: The biggest hurdle is a steady supply.12 Partnering with demolition contractors, utility companies, and electronics manufacturers is critical.
- Compliance: In 2025, environmental permits and “Extended Producer Responsibility” (EPR) certifications are no longer optional—they are a prerequisite for selling to top-tier industrial mills.
The Outlook for 2026 and Beyond
The transition to green energy acts as a massive tailwind.13 A single electric vehicle contains up to 4 times more copper than a combustion engine car. As millions of EVs eventually hit the scrap market, cable recycling will shift from a niche trade to a cornerstone of industrial sustainability.