Provision of a loan to co-finance the construction of a recycling facility for spent lithium-ion batteries for electric vehicles and autocatalysts containing platinum group metals (PGM). The facility will be 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 project is co-financed with EU support under the Important Project of Common European Interest on Batteries framework.
For the company Elemental Holding S.A. the investment allows
(i) entering the new, developing market of Li-ion batteries recycling and
(ii) movement across the value chain for PGM recycling and generate additional margin.
ETI score: 80
Primary Quality - Green. The project involves the construction of a recycling facility for processing spent auto catalysts and Li-ion batteries. The company will apply a thorough approach in recycling: from collection, storage through shredding, smelting and recycling of batteries and various materials important for e-mobility focusing on innovative methods and allowing safe transportation. The project will allow for the reuse of precious metals, reduce greenhouse gas emissions and support the transformation towards a low-carbon circular economy.
ELEMENTAL HOLDING SA
(1) Elemental Holding S.A. (the "group or the "company") is a Polish company active in the collection and recycling of auto-catalysts and electrical waste in Poland, other European countries, the Middle East and the US. The group is listed on the Warsaw Stock Exchange. Elemental reported revenues of PLN 2.2bn (EUR 500m) and EBITDA of PLN 91m (EUR 20m) in 2019.
(2) Elemental Strategic Metals is a SPV established for the purpose of the project.
EBRD Finance Summary
Up to EUR 25 million long-term financing for: (i) construction of a facility for the recycling of lithium-ion batteries and recycling of other waste critical for e-mobility, mainly auto catalysts (up to EUR 21.6 million), and (ii) refinancing part of the existing debt exposure (up to EUR 3.4 million equivalent in PLN).
Total Project Cost
The Project consist of: (i) capex financing co-financed with the EU subsidy, (ii) additional funding for corporate purposes and (iii) refinancing.
The main sources are (i) the financing structure (necessary to structure the project), (ii) technical cooperation, which was crucial for the development of the project and (iii) sector change through participation with other stakeholders via industry conferences and cooperation with universities and scientific research units.
Environmental and Social Summary
Categorised B (2019 ESP). The Environmental and Social Due Diligence (ESDD) concluded that the environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through established mitigation measures.
The Bank Project is the construction of a new recycling facility for platinum group metals in spent electric vehicles Li-ion batteries and auto-catalysts in Poland. The plant will be a new-build Project on a brownfield site. Three other locations are taken under consideration. The Company has undertaken environmental and social due diligence of these locations in accordance with EBRD requirements. The assessments have confirmed that all the locations are 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 will be subject to an EIA process undertaken in line with Polish requirements, which will follow EU standards. Appropriate permits will be obtained from Authorities prior to first disbursement.
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 past due diligence undertaken on a project that did not go ahead in 2015 nor in 2018. At that time, this assessment included a review of the Company's corporate EHS management practices as well as visit to key operations.
The current ESDD concluded that the Company has well-developed 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 in selected sites. The necessary resources and capacities are in place to implement the IMS and comply with the Bank's PRs.
A Non-Technical Summary (NTS) summarizing the Project has been prepared.
The Bank will monitor the implementation of the Project.
Technical Cooperation and Grant Financing
EBRD has supported the Client in technical cooperation in two areas: "Assessment of viable technical solutions for smelting and refining metals from Spent Automotive Catalysts and Printed Circuit Board materials" and "Role of PGMs in the Hydrogen Economy: Market and Technical Study".
Company Contact Information
PSD last updated
14 Dec 2020
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Independent Project Accountability Mechanism (IPAM)
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