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Finland has become the first country in Europe to host a full lithium production cycle, from mine to refinery, according to the Geological Survey of Finland.
The Syväjärvi open-pit mine in Kaustinen will produce battery-grade lithium hydroxide, a critical material for modern electronics, ranging from electric vehicles to smartphones.
The appetite for lithium is often compared to the demand for oil at the dawn of the 20th century — and Finland holds some of Europe’s largest reserves of it.
Reducing reliance on Asian and Australian imports
Keliber CEO Hannu Hautala said the project would reduce Europe’s dependence on lithium imports from Asia and Australia.
“It develops and increases the independence from imports from, for example, Asian countries and Australia,” he said.
The mine is scheduled to be fully operational within two years. Trucks will transport ore to a nearby concentrator plant, producing a sand-like concentrate that is then taken to a refinery to make battery-grade lithium hydroxide.
“The lithium hydroxide will go to the European battery industry,” Hautala said, declining to name any specific clients.
The €783 million project is operated by Keliber Oy, a Finnish mining and battery-materials company.
Sibanye-Stillwater, the South African mining giant, owns 80% of its shares, with the remaining 20% held by the Finnish state-owned Finnish Minerals Group. The European Investment Bank has also provided €150 million in financing.
Sibanye-Stillwater CEO Neal Froneman called the mine “quite small” but said it was “very, very important” from a strategic and technological standpoint, representing the company’s first major investment in Europe.
The Keliber project covers more than 500 square kilometres and includes six additional mining sites planned in the area, alongside Syväjärvi.
Locals divided on the project
In the nearby town of Kaustinen, home to just over 4,000 people, feelings about the project are mixed.
“From an employment perspective, it has been positive,” said local music teacher Pilvi Järvelä. “But of course, people are also worried about the environmental impact and things like that.”
Hautala said the operation is expected to employ around 300 people.
At the refinery, technical director Sami Heikkinen said test runs with water had already begun. If all goes to plan, “we will pack the first bags at the end of this year,” he said, describing the final product as resembling “white sugar crystals,” stored in 500-kilogram or 1,000-kilogram bags ready for transport.
Once fully operational, the refinery is expected to produce around 15,000 tonnes of battery-grade lithium hydroxide annually, roughly 10% of Europe’s current demand according to Langbacka, meaning imports will continue to play a significant role. China currently dominates global lithium supply.
While countries such as Portugal and the Czech Republic hold reserves, the Finnish site is the first to bring the entire production chain within a 43-kilometre radius, with the mine, concentrator and refinery all in close proximity.