Elemental Holding, Mitsubishi Corp. to partner on platinum group metals recycling

Elemental Holding SA, Luxembourg, and Mitsubishi Corp., headquartered in Japan, have agreed to form a strategic partnership involving platinum group metals (PGM) recycling. The transaction is subject to customary conditions and is expected to close in early 2024. 

As part of the strategic partnership, Mitsubishi will provide a trade finance working capital facility that will support the ramp-up of Elemental’s PGM smelter and refinery to full production. Mitsubishi also plans to make an equity investment in Elemental’s operating subsidiary in the United States, which operates primarily under the names of PGM of Texas, Maryland Core Inc. and Legend Smelting and Refining. Elemental says the companies intend to grow their partnership through further collaboration in PGMs and other metals. 

RELATED: Elemental Holding acquires Maryland Core Inc.

The strategic partnership combines Elemental’s and Mitsubishi’s expertise and resources in the collection and preprocessing of spent automotive catalytic converters and the smelting, refining and marketing of refined PGM metals. The parties will work together across numerous avenues to scale and grow Elemental’s PGM recycling business, which includes operations in Europe, North America and Asia that operate under various names.  

Elemental has built an integrated PGM smelter and refinery in southern Poland that uses 100 percent recycled feedstock, which will make a significant contribution to critical mineral independence in the European Union, the company says. Through Elemental’s integrated PGM recycling production chain, the Elemental-Mitsubishi partnership aims to deliver green and sustainable PGMs to customers. 

“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,” Elemental founder and CEO Pawel Jarski says.

“Following the $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."

RELATED: Elemental Holding acquires Colt Recycling LLC

Koichiro Takagi, chief operating officer of Mitsubishi’s Mineral Resources Trading Division, says, “The rise of the hydrogen economy and a global recognition of PGM as critical minerals materially increase PGM’s relevance.”

He describes Elemental as “a highly respected and skilled global supplier of recycled PGM,” adding, “This partnership will help us strengthen our supply chain and underpin our ability to deliver green PGM 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.” 

Elemental has subsidiaries in 35 countries on the continents of Europe, Asia and North America.