METYCLE, a German scrap metal trading platform, has successfully raised $5 million to support its expansion plans. The funds will be used to meet the rising demand for recycling raw materials, such as aluminium used in electric vehicles and lithium used for batteries. This will not only promote sustainable practices but also help in the conservation of natural resources.
Secondary metal or recycled metal is anticipated to play a massive role in the energy transition process, which encompasses adopting electric vehicles and making good use of renewable energy sources like wind and solar power.
It has been observed that the CO2 emissions associated with the production of secondary metal from scrap, compared to the primary metal production from ores and concentrate, are significantly lower. The secondary metal market is expected to grow substantially in the coming years due to its potential to dramatically reduce its carbon footprint. The aluminium recycling process utilises 95 per cent less energy than primary aluminium production.
The successful fundraising round saw the participation of prominent investors such as Project A, a renowned venture capital firm, and Partech, a leading private equity fund. The impressive $5 million investment is a testament to the project's potential and shows the investors' confidence in its success.
The co-founder of METYCLE, Rafael Suchan, asserted: “Trade in secondary metals is global, highly fragmented, intransparent and characterised by low levels of trust.”
It is worth noting that the secondary metals industry primarily consists of small and medium-sized businesses that concentrate on collecting and sorting scrap within their local areas. The European Union has recently increased its metal recycling objectives, with secondary metals playing a significant role in this initiative. This is due to the challenges that red tape poses for mining activities in the EU.
If the recycling sector of the aluminium industry is where your interest lies, please have a look at AL Circle's specially formulated report on the same, World Recycled Aluminium Market Analysis.
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