The trick is the use of a unique polymer (polyimine) laced with silver nanoparticles. It can still conduct electricity and withstand stress, but its covalent atomic bonds make it both self-healing and recyclable at room temperatures. It just has to use widely available ethanol compounds to patch itself up, and you can degrade the polymers using a recycling solution that separates the silver from the skin in question.

Any practical uses are a long way off, but they're definitely on the horizon. You can easily use a modest amount of heat and pressure to make the skin wrap around curved surfaces, so it's ideal for smart prosthetics or advanced robots that may need both ruggedness and a delicate grip. All told, e-skin is becoming more of a practical reality outside of the lab.