Take for example 100 stack of steel, of any kind, planet, stats, & etc. Drop the steel in/on the Recycler "Smelting Machine" while it's in your inventory, whatever you drop in/on it turns into Smelted, with 200 to all stats, and will pop back in your inventory. So now you have a 100 stack of Smelted, and in this case, Smelted Steel. This is helpful for grinding, or for items that don't require experimentation. It gets rid of a lot the extra resources you can't use, and makes them into stacks you can use.