News Release

JX Metals Circular Solutions Co., Ltd. ("JXCS," President: Togami Ichiro), a joint venture between JX Advanced Metals Corporation ("JX Advanced Metals"; President: Hayashi Yoichi; TSE Prime Market: 5016) and Mitsubishi Corporation (President and CEO: Nakanishi Katsuya ; TSE Prime Market: 8058), hereby announces that it will subscribe for new shares to be issued by Renet Japan Group, Inc. ("Renet Japan"; President and CEO: Kuroda Takeshi ; TSE Growth Market: 3556) through a third-party allotment and enter into a capital and business alliance agreement with Renet Japan. JXCS plans to invest JPY 350 million and acquire a 2.4% stake in Renet Japan.

　

As efforts advance toward realizing a circular economy and ensuring a stable supply of resources, resource circulation is becoming increasingly important. This involves collecting end-of-life products and returning the valuable resources contained in them to society for reuse. To promote resource circulation on a sustainable basis, it is essential not only to increase the volume of end-of-life products collected, but also to establish effective links among the various stages of the recycling process, including collection, dismantling and sorting, pretreatment, smelting, and resource recovery, while taking into account the characteristics of each type of recyclable material. It is also important to ensure the appropriate traceability of processing information throughout the entire process,  from collection through resource recovery.

　

Renet Japan provides a nationwide collection service for end-of-life small electronic and electrical appliances using parcel delivery services. As an operator certified by Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry under the Act on Promotion of Recycling of Small Waste Electrical and Electronic Equipment, the company ensures that collected products are properly managed.  In addition to partnership agreements with more than 770 municipalities across Japan, Renet Japan is building an extensive collection network for end-of-life products through collaboration with manufacturers, retailers, e-commerce operators, and other partners. The company also dismantles and sorts the collected small electronic and electrical appliances.

　

The JX Advanced Metals Group efficiently recovers copper, minor metals, and other valuable resources from waste printed circuit boards, end-of-life lithium-ion batteries, and other recyclable materials by leveraging the advanced technologies and expertise it has developed through its copper smelting business. The Group also possesses the smelting and recycling technologies and business infrastructure required to process recyclable materials according to their respective characteristics and efficiently recover the valuable resources they contain.

　

Through this alliance, Renet Japan will leverage its collection networks and expertise at the "front-end" of resource circulation, while the JX Advanced Metals Group will  contribute its smelting and recycling technologies and expertise in resource recovery. By bringing together their respective strengths, the two companies aim to further advance domestic resource circulation. In particular, they will work to efficiently recover resources from waste printed circuit boards, end-of-life lithium-ion batteries, and other recyclable materials obtained from small electronic and electronic appliances collected and dismantled by Renet Japan, taking into account the characteristics of each type of material.

Renet Japan will also receive an investment from SG Holdings Co., Ltd. ("SG Holdings"; President and COO: Matsumoto Hidekazu; TSE Prime Market: 9143) and enter into a capital and business alliance agreement with the company. By combining Renet Japan's collection infrastructure, the SG Holdings Group's nationwide logistics network, and the JX Advanced Metals Group's smelting and recycling technologies, the three parties aim to further expand resource circulation.

　

In connection with this alliance, Togami Ichiro, Representative Director and President of JXCS and Senior Executive Officer of JX Advanced Metals, and Kuroda Takeshi, President and CEO of Renet Japan, commented as follows:

　

Togami Ichiro

"To promote resource circulation on a sustainable basis, it is important for all participants across the supply chain, from the collection of end-of-life products through resource recovery, to work together to improve resource efficiency. We expect Renet Japan's collection network and expertise to play an important role in bringing a greater volume of end-of-life products into the resource circulation system. Through this alliance, we will leverage the respective strengths of Renet Japan and the JX Advanced Metals Group to further expand resource circulation in Japan."

　

Kuroda Takeshi

"We are greatly encouraged to have established this capital and business alliance with the JX Advanced Metals Group. By combining the nationwide collection infrastructure that we have developed in collaboration with municipalities and numerous partners with the JX Advanced Metals Group's advanced technologies and expertise in resource recovery, we will work together to build a collection platform that businesses and consumers can use with confidence.

Through this alliance, we will expand both the volume and range of end-of-life products collected and connect the valuable resources contained in familiar end-of-life products with manufacturing in Japan. By continuing to value collaboration with all relevant stakeholders, we will work to expand resource circulation in Japan and ensure a stable supply of resources, thereby contributing to the realization of the circular economy promoted by the Japanese government and to stronger economic security."

　

The JX Advanced Metals Group will continue working to sustainably secure valuable resources, including copper and minor metals, as it pursues the realization of the "JX Advanced Metals Group Long-Term Vision 2040," thereby contributing to the expansion of the circular economy.