New industry has considerable economic impacts
We make investments on commercial grounds and on a long-term basis, seeking a return on investments. We also support the companies in our investment portfolio to make sure that they increase in value and generate economic value added.
Our investments have significant societal impacts. As an example, the operations of the multi-metal company Terrafame, from mine to manufacture of battery chemicals, generate nearly 20% of the GDP of the Kainuu region and provide employment directly and indirectly for more than 5,500 people in Finland.
More GDP, more tax revenue
In 2019, we estimated that developing the lithium-ion battery value chain with new investments has the potential to increase Finland’s GDP by up to EUR 1.5 billion, assuming eventual annual production of 50,000 tonnes. In addition to the battery chemical production already started up at Terrafame, this requires the establishing of precursor, cathode active material and cell production in Finland.
Our Group companies have not yet generated taxable income but have accrued a considerable amount of tax liabilities, for example through property, fuel, and value added taxes and employer’s health insurance contributions.
We report on the Group’s tax footprint in our annual report, as directed by the Prime Minister’s Office. Tax footprint reporting is based on financial statements drawn up in accordance with the Finnish Accounting Act.
GDP impacts in battery value chain development