Elemental Holding Secures US$290 Million Equity Investment from IFC, EBRD, and PFR
Elemental Holding SA (“Elemental” or “the Company”) the global urban mining and recycling powerhouse originating from Poland, with headquarters in Luxemburg, today announces that is has successfully completed a US$290 million equity private placement from a group of international financial institutions. The investment was led by the International Finance Corporation (“IFC”), the European Bank for Reconstruction and Development (“EBRD”), and the Polish Development Fund S.A. (“PFR”), bringing together a unique combination of world-class financial investors.
The equity private placement is an important step for the Company towards securing more than US$500 million in growth capital including project finance debt, and grants from the European Union. This capital will be committed to funding the Company’s exciting pipeline of growth projects, accelerating its global acquisition strategy, and securing funding for general corporate purposes.
The Company’s growth projects include constructing a state-of-the-art production facility in Southern Poland, which is expected to occupy a leading position in European lithium-ion battery recycling and recovering platinum group metals (PGM) metals from spent automotive catalysts (“SACs”). The facility will include a PGM refinery and an innovative lithium, cobalt, and nickel recovery facility. The plant will produce secondary metals and other materials that can be reused as raw materials for new batteries or other applications, providing an essential service in the lithium-ion batteries value chain. These batteries are a core component of electric vehicles, sales of which are forecast to overtake those of petrol- and diesel-powered cars as the transition to a low-carbon economy progress. Solar photovoltaic panels with the capacity of up to 37MW and electricity storage will be installed at the facility, providing around 40 percent of its electricity needs. The project will reduce greenhouse gas emissions and support the circular economy in the e-mobility sector. The production and use of recycled batteries and metals can lead to more carbon savings as high as 98 percent compared to their primary counterparts and more efficient use of scarce natural resources.
Elemental is also developing an innovative recycling and refining facility for processing e-waste concentrate. The project will enable low-emission production of secondary copper, aluminium, iron, tin, gold, silver and palladium. The facility will be co-located on the same site.
“With our large existing metals recycling footprint and attractive growth pipeline, Elemental is uniquely positioned to benefit from global decarbonization megatrends such as the increased focus on circular economy and recycling, the shift to electric vehicles, and the need to build local supply chains of critical minerals. We are excited to partner with leading global financial institutions such as the IFC, EBRD, and PFR who will play a critical role in enabling the Company’s global growth strategy,” said Pawel Jarski, CEO and Founder of Elemental. “I would also like to thank a former shareholder of Elemental, Przemek Krych of Cornerstone Investment Management, for his support as investor and the potential he saw in the Group.” added Pawel Jarski.
“Enabling emerging markets to tackle growing waste management concerns and laying the groundwork for a circular economy is a priority for IFC," said Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe. "Through this investment, we are supporting a leading global company in reducing the amount of waste being landfilled and contributing to greater sustainability by demonstrating the potential of a circular economy business model.”
“The project demonstrates the EBRD’s commitment to green economy in industry. In Poland, 80 per cent of our investment last year supported low-carbon transition. Our equity investment in Elemental will allow the new facility to introduce solar PV into a traditionally carbon-intensive manufacturing sector, and will support e-waste recycling which is a further step towards sustainability of resources.” said Frederic Lucenet, Director of Manufacturing and Services Team.
“Participation in Elemental’s private placement lies at the very core of PFR’s investment strategy given the Company’s Polish footprint and the fact that through its operations Elemental provides supply of metals that are crucial for future growth of the Polish economy. For our Fund it is a continuation of the long-term involvement in the Company, and we are thrilled to see the growth plans materializing and new investors coming aboard,” said Paweł Borys, PFR’s CEO. “Furthermore, this transaction supports our increasing involvement in green investments which involve supporting areas such as renewable energy, energy efficiency and overall transition of businesses into more environmentally friendly models.”
About Elemental
Established in 2010, Elemental is a global recycler focused on extracting PGM (palladium, platinum and rhodium) from SACs and gold, silver and copper concentrate from waste electrical and electronic equipment, printed circuit boards and non-ferrous scrap metal. Elemental currently has 55 subsidiaries in 35 countries owning more than 50 collection and processing facilities of which 30 are across Europe and the rest are outside of Europe (in the United States, Turkey, United Arab Emirates and Malaysia). Elemental employs over 1,100 people worldwide.
About the IFC
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. The IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record US$32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the EBRD
The EBRD promotes the development of sustainable, private sector-led economies in central and eastern Europe, Central Asia and North Africa. The Bank helps them to address 21st-century challenges and lends support to improve the lives and environments of citizens across society as a whole. Green economy transition is a strong focus of the EBRD. The EBRD is owned by 71 shareholder governments, the European Union and the European Investment Bank.
About the PFR
The PFR is a financial group which offers instruments supporting the development of companies, local governments and individuals, and invests in sustainable social development and national economic growth. The mission of PFR as a Polish promotional financial institution is to implement programs enhancing the long-term investment and economic potential and supporting equal opportunities and environmental protection.
Advisors
Morgan Stanley & Co. International plc (“Morgan Stanley”) is acting as financial advisor to Elemental and to no one else. Morgan Stanley is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority and the PRA. In connection with such matters, Morgan Stanley’s and its affiliates’ respective directors, officers, employees and agents will not regard any other person as its client, nor will Morgan Stanley be responsible to anyone other than Elemental for providing the protections afforded to their clients or for providing advice in connection with the matters described in this announcement or any matter referred to herein.
Elemental Holding SA (“Elemental” or “the Company”) the global urban mining and recycling powerhouse originating from Poland, with headquarters in Luxemburg, today announces that is has successfully completed a US$290 million equity private placement from a group of international financial institutions. The investment was led by the International Finance Corporation (“IFC”), the European Bank for Reconstruction and Development (“EBRD”), and the Polish Development Fund S.A. (“PFR”), bringing together a unique combination of world-class financial investors.
The equity private placement is an important step for the Company towards securing more than US$500 million in growth capital including project finance debt, and grants from the European Union. This capital will be committed to funding the Company’s exciting pipeline of growth projects, accelerating its global acquisition strategy, and securing funding for general corporate purposes.
The Company’s growth projects include constructing a state-of-the-art production facility in Southern Poland, which is expected to occupy a leading position in European lithium-ion battery recycling and recovering platinum group metals (PGM) metals from spent automotive catalysts (“SACs”). The facility will include a PGM refinery and an innovative lithium, cobalt, and nickel recovery facility. The plant will produce secondary metals and other materials that can be reused as raw materials for new batteries or other applications, providing an essential service in the lithium-ion batteries value chain. These batteries are a core component of electric vehicles, sales of which are forecast to overtake those of petrol- and diesel-powered cars as the transition to a low-carbon economy progress. Solar photovoltaic panels with the capacity of up to 37MW and electricity storage will be installed at the facility, providing around 40 percent of its electricity needs. The project will reduce greenhouse gas emissions and support the circular economy in the e-mobility sector. The production and use of recycled batteries and metals can lead to more carbon savings as high as 98 percent compared to their primary counterparts and more efficient use of scarce natural resources.
Elemental is also developing an innovative recycling and refining facility for processing e-waste concentrate. The project will enable low-emission production of secondary copper, aluminium, iron, tin, gold, silver and palladium. The facility will be co-located on the same site.
“With our large existing metals recycling footprint and attractive growth pipeline, Elemental is uniquely positioned to benefit from global decarbonization megatrends such as the increased focus on circular economy and recycling, the shift to electric vehicles, and the need to build local supply chains of critical minerals. We are excited to partner with leading global financial institutions such as the IFC, EBRD, and PFR who will play a critical role in enabling the Company’s global growth strategy,” said Pawel Jarski, CEO and Founder of Elemental. “I would also like to thank a former shareholder of Elemental, Przemek Krych of Cornerstone Investment Management, for his support as investor and the potential he saw in the Group.” added Pawel Jarski.
“Enabling emerging markets to tackle growing waste management concerns and laying the groundwork for a circular economy is a priority for IFC," said Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe. "Through this investment, we are supporting a leading global company in reducing the amount of waste being landfilled and contributing to greater sustainability by demonstrating the potential of a circular economy business model.”
“The project demonstrates the EBRD’s commitment to green economy in industry. In Poland, 80 per cent of our investment last year supported low-carbon transition. Our equity investment in Elemental will allow the new facility to introduce solar PV into a traditionally carbon-intensive manufacturing sector, and will support e-waste recycling which is a further step towards sustainability of resources.” said Frederic Lucenet, Director of Manufacturing and Services Team.
“Participation in Elemental’s private placement lies at the very core of PFR’s investment strategy given the Company’s Polish footprint and the fact that through its operations Elemental provides supply of metals that are crucial for future growth of the Polish economy. For our Fund it is a continuation of the long-term involvement in the Company, and we are thrilled to see the growth plans materializing and new investors coming aboard,” said Paweł Borys, PFR’s CEO. “Furthermore, this transaction supports our increasing involvement in green investments which involve supporting areas such as renewable energy, energy efficiency and overall transition of businesses into more environmentally friendly models.”
About Elemental
Established in 2010, Elemental is a global recycler focused on extracting PGM (palladium, platinum and rhodium) from SACs and gold, silver and copper concentrate from waste electrical and electronic equipment, printed circuit boards and non-ferrous scrap metal. Elemental currently has 55 subsidiaries in 35 countries owning more than 50 collection and processing facilities of which 30 are across Europe and the rest are outside of Europe (in the United States, Turkey, United Arab Emirates and Malaysia). Elemental employs over 1,100 people worldwide.
About the IFC
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. The IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record US$32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the EBRD
The EBRD promotes the development of sustainable, private sector-led economies in central and eastern Europe, Central Asia and North Africa. The Bank helps them to address 21st-century challenges and lends support to improve the lives and environments of citizens across society as a whole. Green economy transition is a strong focus of the EBRD. The EBRD is owned by 71 shareholder governments, the European Union and the European Investment Bank.
About the PFR
The PFR is a financial group which offers instruments supporting the development of companies, local governments and individuals, and invests in sustainable social development and national economic growth. The mission of PFR as a Polish promotional financial institution is to implement programs enhancing the long-term investment and economic potential and supporting equal opportunities and environmental protection.
Advisors
Morgan Stanley & Co. International plc (“Morgan Stanley”) is acting as financial advisor to Elemental and to no one else. Morgan Stanley is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority and the PRA. In connection with such matters, Morgan Stanley’s and its affiliates’ respective directors, officers, employees and agents will not regard any other person as its client, nor will Morgan Stanley be responsible to anyone other than Elemental for providing the protections afforded to their clients or for providing advice in connection with the matters described in this announcement or any matter referred to herein.