BASF and Heraeus have agreed to establish a joint venture to recover precious metals from spent automotive catalysts.

The new company, named BASF Heraeus (China) Metal Resource, will be established in Pinghu, China. The establishment of the legal entity is planned for the first quarter of 2022 after approval by the relevant authorities. Construction is also scheduled to begin in 2022, with operations starting in 2023.

China only has limited natural resources of Platinum Group Metals (PGM), which mainly consist of platinum, palladium and rhodium, and is heavily reliant on imports. The recycling of old materials, e.g. used car catalytic converters, to recover platinum metals enables a circular economy. The precious metals are used to manufacture new products for the automotive, chemical, electronics and green hydrogen industries. Recycled precious metals are also very environmentally friendly and have a_{carbon footprint} up to 90 percent lower than primary metals from a mine. Securing a local supply of recycled precious metals for China is a precursor to a sustainable future.

"By partnering with Heraeus, we will introduce the best pyrometallurgy technology for the recovery of precious metals from spent automotive catalytic converters in China. We are helping to improve resource utilization for high-tech and other companies that use precious metals," said Tim Ingle, Vice President, BASF Precious Metals Refining, Chemicals & Battery Recycling. "BASF's leadership in recycling automotive catalysts and our combined expertise in precious metals provide our customers with a best-in-class solution for a circular economy where precious metals are reused in China."

Marius Vigener, Vice President Business Line Chemicals at Heraeus Precious Metals, added: "This joint venture builds on our already strong presence in wet chemical recycling in China. Recycled precious metals minimize emissions and enable our customers to reduce their_{carbon footprint}. This will support the development of the local circular economy and contribute significantly to the stability of precious metal supply in China."

The new factory will contribute to the local economy by creating 100 new jobs.