ROUTE06 and Mitsubishi Materials Collaborate to Develop E-Scrap Trading Platform "MEX"

Digitally connecting the world's largest smelters and urban mines to help expand recycling operations

ROUTE06,Inc. announces that it has collaborated with Mitsubishi Materials Corporation (hereinafter "Mitsubishi Materials") on the development of an e-scrap trading platform called "MEX".

"MEX" will launch on December 20 as an online service, providing a gateway to E-Scrap trading for Mitsubishi Materials, one of the world's largest processors in this space. It is expected to promote the recycling of E-Scrap, also known as urban mines, and contribute to the expansion of MMC's metals recycling business globally. This project is the first achievement of the DX business under the digitalization strategy (MMDX: Mitsubishi Materials Digital Business Transformation), which is part of MMC's mid-term management strategy.

Expanding E-Scrap market

E-scrap refers to waste electronic circuit boards from used home appliances, PCs, smartphones, and other devices, containing valuable metals such as gold, silver, copper, platinum, and palladium. While demand for resources is increasing worldwide, it is becoming increasingly difficult to develop new mines, and utilizing E-Scrap lying in cities is essential for securing metal resources in the future ¹. In recent years, the amount of E-Scrap processed in Japan has tripled in the 10 years to 2018 as recycling rates have increased around the world due to heightened environmental awareness, and the use of E-Scrap is expected to continue to grow worldwide².

Mitsubishi Materials' E-Scrap Business

Mitsubishi Materials has long been receiving and processing E-Scrap based on the strength of the Mitsubishi Continuous Copper Refining Process, a unique copper smelting technology that has achieved the industry's No. 1 reduction in environmental impact. The MMC Group currently has the world's largest E-Scrap receiving and processing capacity of approximately 160,000 tons per year (equivalent to 20% of the approximately 800,000 tons of E-Scrap generated worldwide). MMC plans to further expand its E-Scrap receiving and processing capacity to approximately 200,000 tons per year by the end of fiscal 2030.

In addition, as a contribution to a sustainable society, the entire Mitsubishi Materials Group aims to reduce greenhouse gas emissions by at least 17% (compared to fiscal 2013) by fiscal 2030, and the promotion of E-Scrap processing is expected to help replace and reduce the use of fossil fuels.

E-Scrap trading platform "MEX"

"MEX" is an online service platform designed to facilitate Mitsubishi Materials' E-Scrap trading, with its name derived from "Mitsubishi Materials E-Scrap Exchange. It allows users to make reservations to bring E-Scrap to the smelter and perform other necessary procedures for E-Scrap transactions with Mitsubishi Materials online at any time. In addition to the intuitive UI, transaction status and photos of E-Scrap arrival at the smelter, the service also features robust information management and extensive customer support, providing an environment where customers can trade E-Scrap with greater peace of mind than ever before. In addition, the platform is designed for global expansion, including multilingual support and compliance with overseas laws and regulations, and is capable of meeting more diverse needs.

By providing "MEX", MMC will also be able to put business procedures online, smoothly link data with other business systems, etc., and realize data-driven business improvement. And by consolidating E-Scrap transactions on "MEX", efficient operation of Naoshima Smelter & Refinery and other world-class smelters will become possible.

<Main functions of "MEX>

• Booking of E-Scrap to be brought to the smelter
• Display of transaction status and gradesffrom receipt to final analysis
• Disclosure of photos of E-Scrap at the time of arrival at the smelter
• Online inquiry response

Details of collaboration

• Creation of digital business strategy
• Service and business design, UI/UX design
• Project management and agile development management
• Data-driven service and business improvement support

Endorsements

Tetsuro Sakai, Executive Vice President, President, Metals Business Company, Mitsubishi Materials Corporation

Managing Executive Officer, President, Metals Business Company
Our company is mainly engaged in B to B business, and in particular, the main products of the Metals Business Company are non-ferrous metals and chemical products that are unfamiliar to the general public. Our business has a long history, and until now, we have mainly engaged in long-term trading with specific customers. E-Scrap's customers, on the other hand, are diverse in terms of business size, geography, and timing of entry into the business. Therefore, "MEX," the interface between our clients and us, must be easy to use, with a wide frontage, easy operation, and familiar design. We believe this project aligns well with ROUTE06's mission of 'seamlessly connecting the physical and digital worlds. We hope that MEX will serve as a gateway for more people to participate and contribute to the expansion of the E-Scrap business and, ultimately, to the development of the industry.

Mitsuru Kameyama, Chief Digital Officer (CDO), Mitsubishi Materials Corporation

Mitsuru Kameyama, Chief Digital Officer (CDO), Mitsubishi Materials Corporation
MEX" has a great meaning to accelerate the overall MMDX by demonstrating concrete results as the "first spear" of MMDX. I think this is another great achievement of MMDX, which aims to be a "diverse One Team", as both companies share the same vision of what we are aiming for, while combining the knowledge we have cultivated over our long history with the fresh perspective of ROUTE06. I would like to express my gratitude to ROUTE06, who led the project with a sense of speed and full remoteness, while at the same time capturing the thoughts and feelings of each and every person on site.

Takafumi Endo, President, ROUTE06 Inc.

MEX will allow our domestic and overseas business partners to more easily access world-class smelting technology. By opening its trading platform to the public, MMC, a leading company in the industry, is expected to contribute to accelerating the growth of the E-Scrap market as a whole. We are very honored that MMC, a startup in its first year of operations, was chosen as a partner for this DX project. We will continue to support MMC's digital transformation by improving the functionality of MEX and pursuing a better customer experience.