Developments in smartphones’ technology affect mobile phone use rates in the world. Increasing use of internet in the last 10 years parallelly force people to use smartphones not only in the work but also in their private lives. This high amount of consumption brings together the problem of excessive amount of waste, and also raises environmental concerns about how to treat them in the end-of-life phase of the smartphones. It is known that a classic smartphone, which is composed of battery, electronics, case part and touch screen, can be dissembled and recycled even though less than 20% of smartphones are going through reusing and recycling in the world. One of the problematic parts of the smartphones’ waste management is the touch screen. Rare earth elements used in touch screens are scarce sources, which are mainly silver, gold, palladium, indium, gadolinium, terbium, yttrium and lanthanum, and these elements cannot be easily substituted. In case they are not reused or recycled, they will be lost forever. In this paper, it is aimed to propose a system dynamics model for rare earth elements’ reuse and recycling in smartphones’ touch screens by a closed loop supply chain view. The design of the system dynamics modelling is operated and simulated by Anylogic and Stella simulation softwares which give perspective to observe how to better manage rare earth elements’ closed loop supply chain in order to increase the rate of reuse and recycling by considering important and relative factors of waste management system.