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Growing, lucrative opportunities are emerging in the battery value chain

Developing the value chain for electric car batteries offers substantial economic benefits to the Finnish society. According to a study commissioned by the Finnish Minerals Group, the benefits would be seen as both direct economic impacts and multiplier impacts across different sectors.


10. May 2019

Vesa Koivisto
Senior Vice President, Battery operations, Finnish Minerals Group

We are in the middle of a major global upheaval both in transport sector and in energy storage. The car industry, including the major European car manufacturers, is committed to developing electric vehicles that can reduce greenhouse gas emissions caused by traffic.


The global sales for electric vehicles are estimated to grow by 20–30% per year until 2030. And each electric car being manufactured requires the latest battery technology.


Moving forward with production development


As Finns, we are in a fortunate position, since we have the key raw materials required for lithium-ion batteries: nickel, cobalt and lithium. We are also already active in refining the raw materials into battery chemicals. However, the battery value chain offers considerable potential for adding even more value to our indigenous minerals.


According to its strategy, Finnish Minerals Group is working on attracting investments related to the lithium-ion battery value chain to Finland. Several investment discussions are currently under way targeting the core of the value chain, that is, the production of precursor and cathode materials as well as battery cells. The total sum of these investments would rise to around EUR 1.5 billion.

During our negotiations, investing in Finland has been considered to be an interesting opportunity especially due to the sustainably produced raw materials.


New benefits during both construction and use


This spring, we commissioned the consulting company Ramboll Finland Oy to prepare an assessment of the planned investments’ impacts on the Finnish society. The assessment studied the economic impacts during both construction and use. The results suggest that the benefits would be very significant.


The battery value chain would allow us to create new industrial activity with high added value. The multiplier impacts would extend to many sectors and, at the same time, support new kind of research and development activities in Finland.


Examples of the economic impacts of a construction period lasting 3 to 5 years:

– The employment impact would be 5,900 person-years

– Total tax revenue would be EUR 180 million

– In addition to the direct investments, the need for investments in other sectors would be around EUR 80 million

– The overall impacts would grow our GDP by about 0.2% compared to the 2018 GDP of Finland


Examples of new economic impacts during the use of the investments:

– The employment impact would be around 9,100 person-years
– Total annual tax revenue would be around EUR 500 million

– The value chain would continue to generate new investments of around EUR 300 million each year

– GDP growth during use would be around EUR 1,3 billion, corresponding to 0.6% of Finland’s GDP in 2018


Finns have a positive view on the battery value chain


In early 2019, we commissioned Taloustutkimus Oy to investigate the Finns' opinions on the potential of the battery value chain for electric cars. According to the results, Finns firmly believe in the potential and economic benefits of the battery industry. The recent economic impact assessment of the battery value chain can be said to confirm this perception.


New investments would generate work, livelihood and prosperity. At the same time, we Finns would be heavily involved in developing carbon neutral transport, supporting circular economy and mitigating climate change. 





10. May 2019