British News Agency

The long-planned project will provide employment for around 350 people and offer a production chain unique in Europe, reducing dependence on imports from China.

The mining area extends across three municipalities: Kaustinen, Kokkola and Kronoby; the Syväjärvi mine is located within the city limits of Kokkola.

Lithium-ion batteries are used in mobile phones, electric toothbrushes, electric vehicles, buses and backup power systems for rail transport. In the future, they are expected to be increasingly used in large industrial energy storage systems.

Lack of financing threatened to derail the project several times. Ultimately, financing was secured in late 2022 through an investment by South African firm Sibanye-Stillwater.

However, lithium prices have fallen since then. When Sibanye-Stillwater invested, the price was ten times higher than last summer’s low. It has since recovered somewhat but remains below the five-year average.

Sibanye-Stillwater owns 80 percent of Keliber. The remaining 20 percent is fully owned by the state-owned Finnish Minerals Group.

Keliber’s integrated production chain is unique in Europe. Portugal has large lithium reserves but no refinery, so it sells lithium as raw ore and concentrate.

Serbia also has lithium deposits, but in November mining giant Rio Tinto suspended the project.

Currently, factories using lithium hydroxide operate in Germany, Poland and Hungary, and another factory is under construction in Kotka in southeastern Finland.

Hautala said, "We will be the first to start production in Europe and, of course, we will have a competitive advantage due to shorter delivery distances compared to imports from China."