Finland has become the first country in Europe to establish a complete lithium production cycle, spanning from mining to refining. The Syväjärvi open-pit mine in Kaustinen will produce battery-grade lithium hydroxide, a vital component for electric vehicles and modern electronics.
This initiative aims to significantly reduce Europe's reliance on lithium imports, particularly from Asia and Australia. Keliber CEO Hannu Hautala stated the project enhances independence from foreign supply chains. The mine, operational within two years, involves transporting ore to a concentrator and then to a refinery for lithium hydroxide production, destined for the European battery industry.
The €783 million project is operated by Keliber Oy, with South African mining giant Sibanye-Stillwater holding an 80% stake. The European Investment Bank has provided €150 million in financing. Sibanye-Stillwater CEO Neal Froneman highlighted the mine's strategic importance, marking the company's first major European investment.
While locals in Kaustinen acknowledge employment benefits, concerns about environmental impact persist. The operation is projected to create approximately 300 jobs. Test runs at the refinery are underway, with initial product bagging anticipated by year-end. The refinery is expected to yield around 15,000 tonnes of lithium hydroxide annually, meeting roughly 10% of Europe's demand and underscoring the continued need for imports, especially from China, the current global leader in lithium supply. Finland's advantage lies in its integrated production chain within a 43-kilometer radius.