Assessment: Kotka cell production plant would significantly enhance the economy and employment

Finnish Minerals Group has commissioned an assessment of the economic impact of a battery cell production plant, or gigafactory, that could be established in Kotka.

According to the assessment carried out by the consultancy company Ramboll, the construction phase of the cell production plant would create in total approximately 20,117 person-years of labour needs and roughly EUR 714 million of tax revenue.

Once operational, the plant would generate about 9,898 person-years of labour needs and some EUR 495 million of new tax revenue each year.

The modellings illustrating the construction phase and the plant’s time of operation took into account the plant’s direct economic impact, the multiplicative effects of production, as well as the multiplicative effects of the consumption resulting from the planned activities in Finland.

The assessment is based on a capacity of 60 GWh

The newly drafted estimate is based on a cell production plant with an annual capacity of 60 GWh.

“The cell production plant represents a great opportunity to strengthen Finland’s economy and employment situation. The multiplicative effects and benefits of the plant and the battery value chain that is under construction will extend to all sectors of our society,” says Matti Hietanen, CEO of Finnish Minerals Group.

“If implemented, the cell production plant could utilise the cathode active material produced by the CAM plant that is planned to be established in Kotka, helping increase the processing degree of Finnish production. Producing raw and other materials locally would also decrease the costs and environmental effects of the production chain,” Hietanen continues.

The construction investment would create over 20,100 person-years of employment

The construction of the cell production plant would entail an investment of approximately EUR 4.8 billion. In addition to the actual plant investments, the project would engender roughly EUR 277 million of investments in the value chains of the construction project.

All impacts of the construction phase are new impacts.

The plant’s operations would increase GDP by over EUR 1 billion per year

The cell production plant would bolster Finland’s economy throughout its operating life. The plant’s operations are estimated to increase Finland’s gross domestic product (GDP) by approximately EUR 1.1 billion per year, corresponding to about 0.4% of Finland’s GDP in 2022.

The review of the plant’s economic impact during its operating life was based on its established annual activities.

An Environmental Impact Assessment procedure concerning the battery cell production plant in Kotka is currently under way. The Centre for Economic Development, Transport and the Environment for Southeast Finland (ELY Centre) acts as the project’s coordinating authority.

More information for the media:

Matti Hietanen, CEO, Finnish Minerals Group
matti.hietanen(at)mineralsgroup.fi
+358 40 823 8806

More information about the assessment:

Review the assessment report here 

Key terms used in the text:

Multiplier effects – the impact on production and consumption due to an increase in demand for goods, services and raw materials as a result of new projects.
Person-year – a unit of work done by a full-time person in a year.
Tax revenue – taxes generated by economic activity for society, such as taxes on products and production, as well as municipal, value added, corporate, property and income taxes.

 

The mission of Finnish Minerals Group is to responsibly maximise the value of Finnish minerals. We manage the State’s mining industry shareholdings and strive to develop the Finnish value chain of lithium-ion batteries. Through our work, we contribute to Europe moving towards electric transport and a more sustainable future. www.mineralsgroup.fi