Elemental Holding SA (Elemental) and Mitsubishi Corporation (Mitsubishi) have agreed to form a strategic partnership in platinum-group metals (PGM) recycling, covering Elemental’s global operations from collection to refined metal.
“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,” said CEO and Founder of Elemental Pawel Jarski. “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.”
According to a press release from Elemental, 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. It is expected that the parties will work together across a number of avenues to scale and grow Elemental’s global PGM recycling business.
Elemental has built an integrated PGM smelter/refinery in Southern Poland that uses 100% recycled feedstock, which it hopes 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.
“The rise of the hydrogen economy and a global recognition of PGM as critical minerals materially increase PGM’s relevance. Mitsubishi is thrilled to expand our relationship in the PGM recycling business with Elemental, a highly respected and skilled global supplier of recycled PGMs, and to jointly build a responsible and green supply chain of recycled PGM,” said Mineral Resources Trading Division COO of Mitsubishi Corporation Koichiro Takagi. “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.”
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.
This transaction is subject to customary conditions and is expected to close in early 2024.
Elemental Holding SA (Elemental) and Mitsubishi Corporation (Mitsubishi) have agreed to form a strategic partnership in...