Europe's First Full-cycle Lithium Mine Ready to Go

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Europe's first complete cycle lithium mining project has completed construction in Syväjärvi in western Finland.

Finished Project

Construction is complete on Europe's first battery-grade lithium hydroxide mining and refining project in Syväjärvi in western Finland. The 783 million-euro (US$922 million) Keliber lithium project will produce Europe's first battery-grade lithium hydroxide from its own ore, a critical component for most modern electronics, from smartphones to electric vehicles (EVs). Finland will be the first European country to operate a full lithium production cycle, from mining to refining. Production is expected to start in Q2 with full production expected in two years. At full capacity, it will produce roughly 15,000 tonnes of battery-grade lithium hydroxide annually at its refinery in Kokkola for at least 18 years - equivalent to around 10% of Europe's current demand. The facility is operated by Keliber Oy, a Finnish mining and battery-materials company, which is 80% owned by South African mining major Sibanye-Stillwater and 20% held by Finland's state-owned Finnish Minerals Group. According to Industrial Info Resources data, there are 8 active Keliber projects worth more than US$1.1 billion in investment. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

New Investment

In recent weeks, the Finnish government - through its Finnish Minerals Group - and Sibanye-Stillwater have agreed to pump a further 200 million euro (US$235 million) for the ramp-up of the Keliber project. "Keliber is the first lithium project under construction in Europe, making it significant at both the Finnish and European levels," commented Minister for European Affairs and Ownership Steering, Joakim Strand. "The project has been designated a Strategic Project under the EU's Critical Raw Materials Act (CRMA)." 

Minister of Economic Affairs Sakari Puisto added: "The Keliber project, which is one of the key projects in Finland's National Battery Strategy, utilises Finland's mineral resources and increases added value. At the same time, it improves Finland's and the EU's self-sufficiency with regard to critical raw materials. I am very pleased that the European Investment Bank has also contributed 150 million euro (US$177 million) to the project."

Boosting European Independence

Speaking to AFP, Keliber Chief Executive Officer Hannu Hautala said the project is important for Europe's efforts to reduce reliance on China and other nations. "It develops and increases the independence from imports from, for example, Asian countries and Australia." Ore from the mine will be trucked to a nearby concentrator plant for crushing, grinding, and concentration to produce lithium concentrate, which will be sent to the refinery - everything is located within 43 kilometers. "The lithium hydroxide will go to the European battery industry," Hautala said, but no customers have yet been announced. The Keliber project spans more than 500 square kilometers, with six additional mining sites planned in the area. 

Europe & Lithium

Europe is mostly reliant on imports of lithium. According to the European Commission, the region relies on foreign sources for roughly 81% of extracted lithium and 100% of refined lithium - most of the latter from China, which has used throttling of critical minerals supplies as an economic weapon. European Union (EU) lithium demand is expected to increase twelve-fold by 2030 and twenty one-fold by 2050. Alongside Finland, it is actively supporting lithium mining projects in Serbia, Portugal and Germany. Industrial Info Resources is tracking 138 European lithium mining, processing, refining and cathode active materials (CAM) manufacturing projects worth almost US$23 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

Key Takeaways

• Construction is complete on Europe's first battery-grade lithium hydroxide mining and refining project in Syväjärvi in western Finland.
• The 783 million euro (US$922 million) Keliber lithium project will start producing in the coming months and at full production in 2028 will produce 15,000 tonnes of battery-grade lithium hydroxide per year. 
• Industrial Info Resources is tracking 138 European lithium mining, processing, refining and cathode active materials (CAM) manufacturing projects worth almost US$23 billion. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).