When the U.S. Navy’s Battery Engineering Laboratories in China Lake, California, recently needed to dispose of 3,600 pounds of silver-zinc batteries, they turned to DLA Disposition Services. Within days, the material was on track for responsible and cost-effective disposal through PMRP—a self-funding program that offers no-cost processing for precious metal-bearing materials.
Michael Vaughn, the program’s process owner, oversees coordination between DLA disposal sites and materials recovery contractors. His role includes evaluating which scrap items are viable for recovery based on metal content and extraction feasibility. High-value metals targeted by PMRP include gold, silver, palladium, rhodium, iridium, and platinum. However, not all items qualify due to cost constraints. For instance, items like hard drives, microfiche, and monitors often require prohibitively expensive extraction methods and are excluded.
The backbone of the PMRP’s success lies in its focus on electronic waste. In 2024 alone, DLA’s contractor processed over 600,000 pounds of scrap, primarily composed of graphics cards, RAM sticks, server boards, and other computer components classified as P8E—or “Sorted Electrical/Electronic Scrap.” This yielded nearly 197,000 troy ounces of silver, valued at approximately $6.85 million, which was reinvested into DLA Troop Support’s inventory for defense applications.
Such recaptured metals provide a buffer against volatile market prices. For context, silver has increased by more than 17% in value since the beginning of 2025, now trading just under $34 per troy ounce. Gold recently reached a historic high of $3,000 per troy ounce. Yet, DLA offers these metals to Department of Defense (DOD) customers at stable prices set at the start of the fiscal year. For instance, two years ago, DLA provided gold at $616 per ounce—well below the market rate—covering only the program's operational costs.
DLA Troop Support’s Integrated Supply Team, led by Alexander Taddei, is responsible for supplying bulk metals—including those from PMRP—to roughly a dozen defense suppliers. These metals support manufacturing of vehicle armor, marine vessel plating, and other critical defense materials. Taddei notes that while PMRP is a small part of his portfolio, its contribution to reducing project costs is valuable. When precious metals are available, they are shipped directly to defense projects via third-party storage vendors.
Currently, only silver is returned to DLA’s stock through PMRP, but broader initiatives are underway. DLA Strategic Materials, which manages the National Defense Stockpile, oversees recovery and reuse of a variety of base and precious metals, rare earth elements like neodymium, and non-metals such as selenium. The Strategic Material Recovery and Reuse Program focuses on replenishing stocks of critical materials including germanium and advanced alloys used in aerospace and defense applications.
