BASF and Heraeus plan $75 million plant in China to recycle precious metals from cars

German industrial majors BASF and Heraeus announced on Friday they would build a facility in China to recover precious metals such as platinum and palladium from vehicle exhaust systems.

The 50–50 joint venture, called BASF Heraeus (China) Metal Resource Co., Ltd, will be set up in Pinghu, China. The founding of the legal entity is targeted in the first quarter this year, following the approval of the relevant authorities. Construction is planned to begin later this year, with start of operations in 2023, the companies said in a statement. The two companies would invest $75 million in the joint venture, Heraeus said.

“Through the partnership with Heraeus, we will bring best-in-class pyrometallurgy technology for the recovery of precious metals from spent automotive catalysts in China and help improve resource utilisation for high-tech and other companies that use precious metals,” Tim Ingle, vice president, BASF Precious Metals Refining, Chemicals & Battery Recycling, said in a statement.

Vehicle exhaust systems are typically fitted with catalytic converters, which use platinum, palladium and rhodium to neutralise harmful emissions.

“This JV builds on our already strong presence in China within the wet-chemical recycling industry. This will support China in the development of its circular economy and contribute significantly to the stability of local precious metal supplies,” Marius Vigener, vice president Business Line Chemicals at Heraeus Precious Metals, said.