DFF - Elemental Battery Recycling

Location:

Poland

Project number:

51890

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

01 Dec 2020

Status:

Disbursing

PSD disclosed:

14 Dec 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

Project Objectives

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.

Transition Impact

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. 

Client Information

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

EUR 25,000,000.00

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

EUR 182,000,000.00

The Project consist of: (i) capex financing co-financed with the EU subsidy, (ii) additional funding for corporate purposes and (iii) refinancing.

Additionality

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

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

Implementation summary


PSD last updated

14 Dec 2020

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.

 

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