SMX (Security Matters) PLC (NASDAQ:SMX) says changes in the economics of plastic production have improved the position of recycled material in parts of the market. The company says recycled plastic has reached parity with virgin material in some areas and can be less expensive, while its technology is designed to authenticate plastic and record its movement through the supply chain.
#Cost pressures reshape the plastic market
SMX links the shift to disruption associated with COVID, inflation, supply-chain pressures, Russia’s invasion of Ukraine and conflict in the Middle East. According to the company, these developments have increased pressure around oil, petrochemicals, manufacturing, transportation and shipping.
Virgin plastic depends on fossil-based feedstocks, while recycled plastic uses material that has already been produced. SMX says this difference has become more significant as the cost comparison between new and recovered material has changed.
The company describes the earlier market dynamic as one in which virgin plastic was generally cheaper than recovered material. It now says recycled plastic can compete with virgin resin in parts of the market, potentially allowing environmental and cost considerations to align without manufacturers necessarily accepting higher prices for recycled inputs.
#Authentication and lifecycle records
SMX says pricing alone is not sufficient to support industrial-scale use of recycled plastic. Manufacturers also need evidence about the material’s identity and origin.
The company’s platform places invisible molecular markers into physical materials. SMX says these markers can remain with the material through its lifecycle and allow plastic to be authenticated alongside information such as composition, origin and recycled content.
SMX also describes a Digital Material Passport that links the physical material to a digital record. The company says the passport records the material’s history and movement through the supply chain, providing information beyond paperwork or unverified claims.
#Digital credit mechanism
SMX’s Plastic Cycle Token is described as a digital credit mechanism connected to certified recycling activity. The company says the token works with the molecular marker and Digital Material Passport to link physical material, lifecycle information and certified circular activity with digital value.
SMX says this structure is intended to support recycled plastic as it passes through repeated cycles of use. The company argues that material already present in products, packaging and waste streams could retain an identity and record of its history rather than being treated solely as discarded material.
#SMX’s stated focus
SMX (Security Matters) PLC says it develops molecular traceability and material authentication technologies for supply-chain transparency and integrity across global industries. Its platform is designed for physical materials including solids, liquids and gases.
The company says the world has already manufactured billions of tons of plastic and that existing material could become an economic opportunity where recycled plastic competes with virgin resin. The article does not provide a financial valuation for that opportunity or report results for a specific financial period.
#Key Takeaways
- SMX says recycled plastic has reached parity with virgin material in parts of the market and can be less expensive.
- The company links the change to pressure on oil, petrochemicals, manufacturing, transportation and shipping.
- SMX uses invisible molecular markers to authenticate materials and connect them with information about composition, origin and recycled content.
- The Digital Material Passport records material history and supply-chain movement, while the Plastic Cycle Token connects certified recycling activity with digital value.
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