Two Companies Intend to Partner in PGM Recycling Business

Elemental Holding SA and Mitsubishi Corporation have agreed to form a strategic partnership in platinum-group metals (PGM) recycling, covering Elemental’s global operations from collection to refined metal.

According to the information, the strategic partnership will combine Elemental’s and Mitsubishi’s expertise and resources in collecting and pre-processing of spent automotive catalytic converters and the smelting, refining and marketing of refined PGM metals. Both parties would work together “across a number of avenues to scale and grow Elemental’s globally leading PGM recycling business”. This transaction is subject to customary conditions and was expected to close in early 2024.

Photo: Elemental Holding SA

Elemental – a global active company in urban mining with a focus on extracting strategic metals from various recycled metal sources and subsidiaries in 35 countries on three continents (Europe, Asia and North America) – has built an integrated PGM smelter and refinery in Southern Poland that uses 100 percent recycled feedstock. As underlined, the facility will significantly contribute to critical mineral independence in the European Union. “Through Elemental’s integrated PGM recycling production chain, the Elemental-Mitsubishi partnership will aim to deliver the greenest and most sustainable PGMs in the world to its customers.”

As part of the strategic partnership, Mitsubishi will provide a trade finance working capital facility to support ramping up of Elemental’s PGM smelter and refinery to full production. As reported, the Japan-based corporation will also make an equity investment in Elemental’s operating subsidiary in the United States. The parties intend to grow their partnership through further collaboration in PGMs and other metals. Both companies would benefit from their partnership. “Mitsubishi is the leading trader of PGMs in the world and will be able to add significant value to our business through their marketing expertise, global network, balance sheet and reputation,” Pawel Jarski, CEO and Founder of Elemental, was cited. Following the 290 million US-Dollar equity capital raise completed in January 2023, “we are thrilled to add another blue-chip partner to our unique recycling business model. The partnership with Mitsubishi will help us deliver more recycled critical minerals to the European Union and beyond.”

Koichiro Takagi, Mineral Resources Trading Division COO of Mitsubishi Corporation, welcomes the collaboration as well. “This partnership will help us strengthen our supply chain and underpin our ability to deliver green PGMs for the growing demand of PGM including from the hydrogen economy. We also view this partnership as a potential step to expand our partnership with Elemental in the recycling business of other critical minerals such as base metals and battery metals on a global basis.”,

(Published in GLOBAL RECYCLING Magazine 1/2024, Page 16, Photo: Elemental Holding SA)