Warsaw, Poland, January 13, 2023—To support efficient waste disposal, cut greenhouse gas (GHG) emissions, and promote the move towards a circular economy in Poland, IFC is partnering with Elemental Holding, a leading global urban mining and recycling conglomerate.
IFC is investing $90 million in convertible preferred shares in Elemental to support its global growth strategy, which includes constructing new downstream metals recycling and metals refining facilities in Poland, accelerating its global acquisition strategy in new regions, and securing funding for general corporate purposes. The investment is part of a $290 million equity private placement alongside the European Bank for Reconstruction and Development, and the Polish Development Fund.
IFC's investment will help Elemental ramp up its ability to take various waste streams – electronic waste (e-waste), spent automotive catalysts, and lithium-ion batteries from electric vehicles – and extract valuable metals and materials from them for reuse. This increases the sustainable supply of rare metals and recovery and reuse of valuable raw materials, improving the resilience of the supply chains for crucial industries and, in a context of limited global resources, addresses key environmental and climate challenges.
Waste collection and proper disposal and recycling are growing in Poland, but still lag behind European Union targets, with 49 percent of waste recycled, 43 percent landfilled, and the remaining 8 percent disposed of elsewhere. IFC's funding is expected to help the company reduce inadequate waste disposal and cut GHG emissions from primary mining and electricity generation. Solar photovoltaic panels with the capacity of up to 37MW and electricity storage will be installed at the new facilities in Poland, providing around 40 percent of its electricity need.
"With our large metals recycling footprint, Elemental is uniquely positioned to benefit from global decarbonization megatrends, such as the circular economy and recycling, and the need to build local supply chains of critical minerals. We are excited to partner with leading global financial institutions such as IFC, EBRD, and PFR to help drive our sustainable growth," said Pawel Jarski, CEO and Founder of Elemental.
According to the United Nation's Global E-Waste Monitor 2020, 2 million tons of e-waste has been generated each year since 2014, but only 0.4 million tons was collected and recycled each year in the same period and the rest is disposed inadequately.
"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."
IFC will also be supporting Elemental in strengthening its corporate governance and improving its capacity to manage environmental and social risks of its existing plants and growth projects.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $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 and www.ifc.org/infrastructure.
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About Elemental
Established in 2010, Elemental is a global recycler focused on extracting palladium, platinum, and rhodium ("PGM metals") from spent automotive catalysts ("SACs") and gold, silver and copper concentrate from waste electrical and electronic equipment, printed circuit boards ("PCBs") 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 U.S., Turkey, UAE, and Malaysia). Elemental employs over 1,100 people worldwide. For more information, visit www.elemental-poland.biz.
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