On this page of the guide to Void Bastards, you will learn when it is best to recycle. You use this option to get rid of unnecessary items and get other, potentially more useful things.
There are a few ways of recycling items. Every recycling process should be done with care - you don't want to get rid of things that may be useful to you.
Recycling is available between missions. Go to the Workbench menu. There, you can go to the Recycle Mode tab. You will see currently owned crafting parts. Do not dismantle all the parts - you don't want to lose useful crafting materials. Stop the cursor on the parts. Search for spare parts with information that they are of no use - an example of such a message is in the picture above. Recycle only these parts - you will get a few crafting materials back.
You can also recycle parts in GARB rooms found on some enemy ships. Recycle crafting parts to get Merits. Don't recycle everything you have. Recycle items only when you need credits (for example, for authorization on the same ship).
The last option is to visit a FIX room that appears on the ships encountered later in the game. There, you can recycle low-quality Junk to get a higher quality Junk - those that will provide you more crafting materials. In this case, there are no additional contraindications. Return to the FIX rooms whenever you can (preferably at the end of the mission).