1. How does Finnish Minerals Group benefit Finland?
Our mission is to responsibly maximize the value of Finnish minerals. This means both the development of domestic ownership in the mining industry and the aspiration to generate more valuable products. We bring active and competent capital to the technologically advanced Finnish mining industry. In addition, we want to create an integrated electric vehicle battery value chain in Finland.
2. What is an integrated electric vehicle battery (EVB) value chain?
The production process of an electric vehicle battery includes several phases and actors, including raw material producers, precursors and cathodes producers, cell and pack manufacturers and their end users (car manufacturers). Recycling is also a key element in the value chain.
Please find a more detailed description of the EVB value chain here.
3. What makes Finland attractive in the EVB business?
Finland has a unique raw material base for EVB production on a European scale. Thus, it offers the country a strong position to move downstream in the value chain. Finland can provide a secured supply of sustainably produced, critical raw materials – together with reasonably priced renewable energy, knowledgeable workforce, a politically stable environment and efficient logistics. Furthermore, “Made in EU” labelled batteries enhance the image.
4. Finnish Minerals Group was previously called Terrafame Group. How is the company’s role different?
Terrafame Group concentrated on steering the state ownership in Terrafame Ltd., which operates the mine and metals factory in Sotkamo.
Finnish Minerals Group has a wider mandate, which as a state-owned special-purpose company, develops the Finnish battery and mining ecosystem. We operate as a long-term strategic majority owner of Terrafame Ltd. as well as other battery and mining cluster holdings. Furthermore, we manage the mining and battery investment program, develop the battery value chain and coordinate different R&D projects.
5. You have ambitious objectives – how are you planning to finance all the activities?
The government of Finland has capitalized Finnish Minerals Group with 46 million euros that is to be used for the development of the Finnish mining and battery cluster.
It is clear, however, that the establishment of an integrated, internationally competitive electric vehicle battery value chain requires large investments. Our plan entails looking for partners internationally. We believe that our value proposition is positive for potential investors.
6. You talk a lot about responsibility. What does this mean in practice for your business?
We are committed to sustainability, environmental responsibility and occupational safety. Corporate responsibility is a key component in our investment strategy: we want to responsibly maximize the value of Finnish minerals.
Moreover, our core mission aims at enabling the increase of electric traffic in a sustainable way. An integrated Finnish battery value chain ensures that the raw materials and components are produced in a responsible way that drives sustainability – following very strict environmental legislation.
7. What type of mining industry investments can be expected from Finnish Minerals Group?
We actively screen and assess possibilities for new investments. We invest in Finnish assets that are preferably relevant to the battery value chain. All our investments will be commercially driven, and we also take into account their sustainability aspect.
8. What are your plans regarding Terrafame?
We are pleased with Terrafame’s development and we are committed to remaining as its majority shareholder.
9. What type of partners is Finnish Minerals Group looking for in battery operations?
There are already strong raw material producers in Finland – yet some parts of the EVB value chain are underdeveloped, as throughout Europe. Building the value chain with an experienced and proven technological partner would significantly shorten the timeline to production.
10. What could be a realistic timeframe for building a properly running vehicle battery value chain?
First steps would be to execute the feasibility studies and finding a partner during 2018–2019. Hence, the investments could start in 2020 at the earliest.