Finnish Minerals to power the future of transport
Electrification of transport is developing fast around the globe. It is estimated that the sales of fully or partly electric vehicles will annually grow by 35% until 2025. Finland is in a good position to become a major player in the megatrend that is in the core of global climate actions.
The single most expensive component of an electric vehicle is its battery. Key raw materials of the electric vehicle battery are metals such as nickel, cobalt and lithium. Single electric vehicle using newest battery technology contains approximately 50 kg of nickel, 7 kg of cobalt and 8 kg of lithium. Expected rapid increase in the sales of EV’s consequently means that demand of batteries and battery raw materials is growing substantially.
Electric vehicle battery value chain from raw materials to battery packs and to end users includes several phases and actors, such as raw material producers, processed materials producers, cell and pack manufacturers, and car manufacturers and other end users. Especially in the future recycling will also be a key element in the value chain.
China, Japan, and Korea currently dominate the global passenger electric vehicle battery market
with more than 90% market share. The demand for electric vehicle batteries in Europe is expected to increase to over 200 GWh per year by 2025.
At present, however, the European battery production is negligible. The European Commission has recognized the situation and initiated actions to accelerate the development of the European battery value chain. One of these actions is the formation of the European Battery Alliance where Finnish Minerals Group is as a key stakeholder.
Both EU and European vehicle makers have interest in increasing local, European battery manufacturing capacity.
Finland has great potential to succeed
Finland has all the possibilities to be in the front line of the electrification of transport and climate actions.
Finland is the only relevant European source for critical EVB materials such as cobalt and nickel. Our unique raw material base and secured supply enable a strong position to move downstream in the value chain.
Additionally, Finnish raw materials are produced responsibly – a factor that brings additional value to customers. “Made in EU” labelled, sustainably produced batteries will support the image of European car makers.
Furthermore, Finland can provide reasonably priced clean energy, knowledgeable labour, efficient logistics, good infrastructure as well as cutting edge R&D capabilities.
All in all, Finland has gotten a good hand and if the cards are played right Finland can utilize the potential not only to be a raw materials producer but also to establish an integrated national electric vehicle battery value chain.
Responsibly maximizing the value of Finnish minerals
The mission of Finnish Minerals Group is to responsibly maximize the value of Finnish minerals. Establishing an integrated electric vehicle battery value chain in Finland is clearly in the core of our mission.
There are multiple options to position oneself in the electric vehicle battery value chain. The simplest form is a raw-material producer, followed by an intermediate producer role as precursor or cathode producer. Taking the value chain all the way to cell or battery production would add most value to the Finnish economy.
Finnish Minerals Group’s subsidiary Terrafame is a major nickel supplier and already aiming to broaden its operations to battery chemicals i.e. nickel sulfate and cobalt sulfate production. Keliber is targeting to be EU’s first lithium mine and to produce lithium chemicals.
According to our estimates, precursor production would double the raw material value, cathode production would offer almost three times the raw material value and cell manufacturing would increase the value by factor of eight.
Setting up the whole value chain could boost Finnish GDP approximately by 1% in the long term. The key question is how far in the value chain can we go.
Sustainability is at the core of our mission. Our investment strategy is focused on commercially driven but responsible investments considering also societal impact.
An integrated Finnish battery value chain in its most comprehensive form would ensure traceable, responsibly produced and cost-efficient batteries that are competitive in a global market.
Finnish Minerals Group