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.
The strategic partnership will combine Elemental’s and Mitsubishi’s expertise and resources in the collection and pre-processing of spent automotive catalytic converters and the smelting, refining and marketing of refined PGM metal. The parties will work together across a number of avenues to scale and grow Elemental’s globally leading PGM recycling business.
Elemental has built an integrated PGM smelter/refinery in Southern Poland that uses 100 percent recycled feedstock, which will make a significant contribution 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 that will support ramping up of Elemental’s PGM smelter/refinery to full production. Mitsubishi will also make an equity investment in Elemental’s operating subsidiary in the U.S. The parties have a clear intent to grow their partnership through further collaboration in PGMs and other metals.
Pawel Jarski, chief executive officer and Founder of Elemental, said: “We are excited to establish a strategic partnership with Mitsubishi in our PGM recycling business. 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. Following the US$290 million 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.”
This transaction is subject to customary conditions and is expected to close in early 2024.