In the current recycling system of end-of-life (EoL) appliances, which is based on shredding, alloying elements tend to end up in the scrap of base metals. The uncontrolled mixing of alloying elements contaminates secondary metals and calls for dilution with primary metals. Active disassembling fastener (ADF) is a design for disassembly (DfD) technology that is expected to solve this problem by significantly reducing the extent of mixing. This paper deals with a life cycle assessment (LCA) based on the waste input-output (WIO) model of an ADF developed using hydrogen storage alloys. Special attention is paid to the issue of dilution of mixed iron scrap using pig iron in an electric arc furnace (EAF). The results for Japanese electrical and electronic appliances indicate superiority of the recycling system based on the ADF over the current system in terms of reduced emissions of CO(2). The superiority of ADF was found to increase with an increase in the requirement for dilution of scrap.