Elemental PGM

Location:

Poland

Project number:

53657

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

05 Oct 2022

Status:

Approved

PSD disclosed:

31 Aug 2022

Project Description

Provision of a loan to finance the expansion of a recycling facility and installation of PV panels on site. The facility (currently under construction) will allow recycling of spent lithium-ion batteries for electric vehicles and autocatalysts containing platinum group metals (PGM). The facility will be one of the first of its kind in the EU and entail deployment of a new technology. It will produce secondary metals and other materials that can be reused as input for the production of new batteries or other applications, providing an essential recycling service within the lithium-ion batteries value chain and circular economy. The installation of PV panels also contributes to reducing the carbon footprint.

Project Objectives

The Project will support a responsible management of limited resources in the circular economy via recycling of Platinum Group Metals (PGMs).  The Project will allow Elemental Group to:

(i) enter the new, developing market of Li-ion batteries recycling and

(ii) move across the value chain for PGM recycling through construction of own processing facility.

Transition Impact

ETI score: 80

The transition impact is derived from the Green quality. The loan supports the capacity expansion of a recycling facility for processing of spent auto catalysis (SACs) and li-ion batteries, and the installation of PV panels, primarily to generate electricity for its recycling facility. Once constructed, the facility will produce secondary metals (cobalt, nickel, rhodium, platinum, palladium, copper and other non-ferrous metals) that can be reused as raw materials for new batteries or other applications, thus providing an essential service within the Li-ion batteries value chain, reducing greenhouse gas emissions and supporting the transformation towards a low-carbon circular economy. 

Client Information

ELEMENTAL STRATEGIC METALS SP ZOO

Elemental is a Polish group that provides global collection and processing facilities across PGM operations and e-waste, with strong market presence in key markets across Europe, the USA and Asia.

Elemental Strategic Metals is a SPV established for the purpose of the project.

EBRD Finance Summary

EUR 52,000,000.00

Up to EUR 52 million long-term financing for the Group's green capex programme including: (i) up to EUR 38m for capacity increase of its state-of-the-art precious metals and li-ion batteries recycling facility located in Zawiercie, Southern Poland (currently under construction), and (ii) up to EUR 14m for the installation of photo-voltaic (PV) panels on the existing site in Zawiercie, to generate green energy predominantly for its own use.

Total Project Cost

EUR 120,000,000.00

The Project consists of capex financing.

Additionality

The EBRD provides longer-term financing which allows the Company to implement the Project. In addition to that, EBRD enables an assessment of the Project technology with the aim of helping the Company to optimise investment decisions.

Environmental and Social Summary

Category B (ESP 2019). Environmental and social issues associated with the construction of a new battery recycling facility in Zawiercie can be readily assessed and mitigated based on an Environmental, and Social due diligence (ESDD).  The ESDD concluded that the environmental and social impacts associated with the Project are site specific, and readily identified and addressed through established mitigation measures. The Project is structured to comply with the Bank's Performance Requirements (PRs) as well as National and EU legislation and is Paris Aligned.

The Bank Project is the construction of a new recycling facility in Zawiercie Southern Poland for platinum group metals in spent electric vehicles Li-ion batteries and auto-catalysts in Poland.  This follows up from an earlier Bank financed Project with Elemental Group in 2021. The EBRD loan will finance the expansion of the facility for: (i) recycling of lithium-ion batteries, from EV and other sources (mobiles phones, laptops etc.) and (ii) recycling of spent auto catalysts which contain platinum group metals. The expansion of the Project's capacity envisage up to 4x original capacity for spent batteries and up to 2.5x original capacity for auto catalysts. The facility will also have integrated energy and waste treatment solutions. The on-site installation of 10MW PV panels will allow for better energy management and security. In terms of construction, the Company has now acquired the land, obtained environmental permits (following a local EIA) and currently awaits for the construction permit.

An in-house ESDD was undertaken based on meetings with Company personnel and the review of documents. The ESDD also builds on past experience with the Company and review of corporate Environmental and Social Governance (ESG) system and overall compliance status. The ESDD has confirmed that the site in Zawiercie is suitable for development and in line with local development plans and national environmental legislations with appropriate infrastructure such as water, gas and electricity.   The Project is structured to meet EU BAT requirements as well as EU Taxonomy.

The Company has well-developed corporate EHS and HR systems and the capacity to fully implement the Bank's PRs. Environmental and occupational health and safety issues are managed through an integrated management system (IMS)  as well as ISO 14001. The necessary resources and capacities are in place to implement the IMS and comply with the Bank's PRs. The Company is developing and integrated ESG management systems and reporting procedures for all its operations and will publish sustainability reporting in line with EU Requirements.

In terms of environmental procedures, the Company follows the requirements of Polish Regulatory Framework, which is complaint with EU Environmental Directives in Poland and National legislation in other operations. As part of the ESAP the Company will apply/benchmark with EU requirement where necessary to ensure consistent cooperate approach to E&S issues. The Company is focusing on recycling and the implementation of the Circular economy is at the core of the Company's activities.  The new facility is designed to compliance with EU Best Available Techniques  (BAT) requirements under the EU Industrial Emission Directive (IED). From a Circular Economy perspective, the Project fits well in the recently published EU Circular Economy Action Plan and will increase the potential to recycle platinum group metals from both catalysts and battery recycling. The Company recycles a number of rare metals (e.g. lithium, cobalt, platinum, palladium, manganese). Currently these metals are sourced mainly from non-European mines and their extraction is associated with high carbon and environmental footprint. Their recycling and reuse as secondary metals can substantially decrease associated greenhouse gases (GHG) emissions. For example, carbon savings associated with secondary Platinum Group Metals amount to 92%-98% when compared to their primary counterparts. Moreover, application of secondary metals in batteries for EVs enables the transition to a low-carbon economy, thereby contributing to the climate change mitigation of the transport sector.

The new project will include the construction of an on-site PV solar farm to provide energy for the plant. The PV panels are to be procured in due course, the Company will implement the Bank's requirements with respect to supply chain assessment to assess and limit environmental, and human rights risks in the supply chain. The Company will fully implement EU guidance on human rights and supply chains as well as the Bank's guidance.

The Company is and will further implement corporate HR polices which include systematic HR audits to address potential labour issues at all its operations in Poland and abroad.

Based on the ESDD a comprehensive ESAP has been developed and preliminary agreed with the Company inclusive of implementation of compliance with the EU BAT requirement and circular economy concepts as well as supply chain requirements. The Company will also further strengthen its corporate  ESG reporting and disclosure, inclusive of climate related financial risks in line with the EU Corporate  Sustainability Reporting Directive (CSRD).  

The PSD will be updated once the ESDD is completed and NTS developed.

The Bank will monitor the implement the Project.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Michal Zygmunt
m.zygmunt@elemental.biz
www.elemental.biz

PSD last updated

28 Oct 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

Share this page: