Economic appraisal

In-depth analysis of spent autocatalyst recycling and value chain

SFA (Oxford) provided an independent view of the PGM value chain for spent autocatalyst recycling, highlighting the indicative cost and value addition at each stage (removal, collection, pre-processing, smelting, and refining).

The recycling sector

A guide for the new entrant

The SFA (Oxford) team completed an overview and evaluation of opportunities within the PGM recovery/recycling sector, defining the barriers to entry confronting a newcomer to the sector, identifying the main players in the value chain, and forecasting regional collection rates and volumes of spent autocatalysts, as well as appraising other market sources of secondary PGMs.

Global volumes and new market direction

Regional survey on spent autocatalysts for a major PGM refining company

SFA (Oxford) produced a concise overview of automotive catalyst end-use, including PGM requirements, industry trends, emission legislation and inter-related metal substitution.

The review calculated current average regional volumes of platinum, palladium and rhodium arising from spent autocatalysts, and estimated historical and future regional collection rates of spent autocatalysts by ceramic and metal substrate.

We quantified the numbers of ceramic and metal substrates available for recycling in the selected regions and identified the main players in the value chain, including processors and, where possible, collectors.

Investment/disinvestment

Strategic options review for a major PGM recycler

SFA (Oxford) assisted in the derivation of a high-level, practicable, and viable scaling-up of business strategy (or disinvestment case). Detailed PGM market intelligence was provided, covering primary and secondary supply and demand. The review contextualised assets/ operations against those of local peers and global competitors, and offered an independent view on the metal price dynamics of platinum-group markets, so as to determine a robust window of economic opportunity for the company’s PGM business.

Contextualisation of autocatalyst, jewellery, and WEEE recycling

The viability of PGM recycling as a strategic investment by a major metal refining company

SFA (Oxford) articulated the challenges surrounding PGM recycling, clearly defining the opportunities it offered. The report contextualised the sources of PGM scrap arising from traditional sources such as the jewellery sector, the growing autocatalyst market, and the emerging lower-grade sources of PGMs from electronic waste.

Each PGM end-use market was defined in terms of its relevant volumes, the availability of scrap for recycling, and recovery rates, so as to determine potential business opportunities. Prices and payment terms offered to collectors, metal recoveries offered, and the types of metal accepted were quantified.

Geographical, environmental and political issues were covered, along with the technologies, people, and skills required, as well as the legislative environment.

Supply security

Long-term forecast of PGM volumes available for recycling/PGM primary and secondary refinery capacity estimates 

The SFA team supplied comprehensive forecasts of recycled PGMs from autocatalysts (covering gross weights of ceramics and PGM content), jewellery, electronic scrap, chemical and petrochemical catalysts, petroleum catalysts, fabricated metal scrap and other uses.

Asset divestment

Due diligence study on a PGM recycling operation for a major conglomerate

SFA (Oxford) carried out an indicative financial evaluation, taking into account volume, revenue, and cost projections, whilst also considering proposed value accretive options.

Economic appraisal

Business valuation of a major PGM recycler

SFA (Oxford) assessed the overall competitiveness of a refinery  involved in recycling by conducting a benchmarking exercise, comparing the plant to other global refineries, and considering the following factors: recoveries, operating costs, location, quality of assets, and external and internal negotiated tolling terms.

We conducted a market valuation, considering all relevant qualitative and quantitative factors of the existing operation, on a standalone basis, and identified and analysed the operation’s value, determining the net asset value versus sale options.

European spent autocatalyst market study

Exploring opportunities, trade flows, and processing trends

SFA was commissioned to evaluate the long-term market opportunity for processing spent autocatalysts. Leveraging off SFA’s robust proprietary PGM recycling models, the study spanned collection networks, international trade flows, potential partnerships, processing capacity and the rising impact of silicon carbide diesel particulate filter scrap.

Market study on closed-loop spent industrial catalysts

Assessing global trends in closed-loop industrial catalysts for recycling opportunities

Working with a significant player in catalyst processing, SFA was commissioned to conduct a global study on industrial closed-loop PGM demand trends for petroleum, petrochemical and chemical catalysts on a regional basis. The study covered sector volumes, the competitive landscape, technological developments, and major consumers by company. In addition, regional indicative commercial terms helped evaluate the most lucrative spent catalyst feed sources for processing.

Assessing the mainstream petrochemical markets, SFA assessed PGM catalysts used in paraxylene (PX), vinyl acetate monomer (VAM), propane dehydrogenation (PDH), hydrogen peroxide (H₂O₂), purified terephthalic acid (PTA) and caprolactam. SFA also analysed the catalytic reforming and isomerisation sectors, nitric acid, acetic acid and oxo-alcohols markets.

Market study of problematic materials for autocatalyst recycling

Challenges in autocatalyst recycling

SFA has completed a thorough assessment of problematic materials for autocatalyst recycling which cannot be processed by traditional smelters, including silicon carbide (SiC) used for diesel particulate filters and other material types. The SFA team evaluated geographical recycling volumes using its comprehensive industry knowledge of PGM loadings, macroeconomic trends and thrifting of PGM-based SiC catalysts to ensure realistic recycling PGM volumes from end-of-life vehicles were calculated. The team used SFA’s vehicle production database to determine market sizing to support the long-term investment case for processing these problematic materials.

Battery recycling due diligence

European battery recycling market: Investor due diligence

Working with a team of experienced consultants and advisors, SFA completed a European battery recycling due diligence study on behalf of an investor to assess medium- to long-term market feed lithium-ion battery volumes from gigafactory scrap and end-of-life vehicles. SFA assessed the target company’s value chain CAPEX/OPEX techno-economics, the competitive landscape, market partnerships and opportunities, and operational risks and challenges to support the client’s potential investment in the sector.