The iPod touch 5G is made out of Lithium for the battery and Aluminum
The iPod 5, like most iPods its made out of recyclable Aluminum, there aren't a lot of hazardous materials, but there are things like brominated flame retardants.
I had a iPod and if I were to be honest I liked it a lot more at only the start, towards the middle it was so easy to crack even with an protective case. I think they can approve on that and also approve on the wires. because those break very fast.
Asia and mostly Europe supply these materials to make the product The device is recyclable once its mostly made out of recyclable items, the materials are very reusable.