Finnish Minerals Group to become IONCOR's majority owner

The Finnish State has today announced that it will become the majority owner of Valmet Automotive Plc, an automotive contract manufacturer. As part of the ownership and financing arrangements, Finnish Minerals Group (FMG), wholly owned by the State, will become the majority owner of IONCOR Oy, which engineers and manufactures battery solutions and has operated as a subsidiary of Valmet Automotive.

The outcome of these arrangements will be a Finnish-owned battery industry player, which strengthens FMG’s ownership portfolio, particularly downstream along the value chain in battery system R&D and production. Going forward, FMG will own 70% of IONCOR, Varma Mutual Pension Insurance Company 16%, and Pontos Group 14%.

“FMG’s strategic objective is to develop a responsible battery value chain in Finland and to drive the creation of a new industry and expertise in the country. IONCOR fits perfectly with our special mission and strategy, as battery engineering and battery system manufacturing are an essential addition to our portfolio downstream in the domestic battery value chain,” states Matti Hietanen, CEO of FMG.

IONCOR develops and manufactures battery solutions particularly for the electrification of bus & truck segments, off-highway machinery and the automotive industry. The company employs approximately one thousand professionals in total in Finland and Germany. The company’s production facilities are located in Salo and Uusikaupunki in Finland, and in Kirchardt, Germany. IONCOR’s gross sales grew significantly in 2024 as production volumes increased, amounting to approximately EUR 1.5 billion.

“IONCOR supports FMG’s strategic development towards becoming a strong European player in the battery value chain. Our goal is for IONCOR to succeed, and I believe that the strong ownership of FMG and co-investors offers the best opportunities to strengthen IONCOR’s position and export potential as a supplier of battery systems. At the same time, we are elevating the Finnish battery value chain to a new level,” Hietanen says.

Implementation of the arrangement

As part of the overall Valmet Automotive arrangement, the State, together with Varma and Pontos, will acquire the shares of Valmet Automotive’s subsidiary IONCOR from Valmet Automotive. The parties have agreed that the acquisition price will not be disclosed. In addition, the State will invest approximately EUR 20 million of new capital into IONCOR. FMG will grant IONCOR a loan of EUR 35 million for operating expenses and product development. Following the completion of the arrangement, the pro forma net sales of the Finnish Minerals Group companies, based on 2024 data, will be approximately EUR 800 million, the balance sheet approximately EUR 1.85 billion, and the number of personnel approximately 1,900.

IONCOR’s current CEO, Roberts Abele, will continue as the company’s CEO. There are no personnel implications due to the ownership arrangement in sight.

The German competition authority approved the acquisition in August before it was carried out.

 

FMG’s CEO interview requests and other media contacts:

Katri Kauppila, VP, People and Corporate Affairs, Finnish Minerals Group
firstname.lastname(at)mineralsgroup.fi, +358 40 569 9200

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Finnish Minerals Group Oy

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

IONCOR Oy

IONCOR is a leading European supplier of battery systems for electrified vehicles. The company focuses on battery systems designed for bus & truck segments, off-highway machinery, such as construction, material handling, agriculture, mining, and forestry, and the automotive industry. IONCOR, founded in 2019 as Valmet Automotive EV Systems business line, operates technology and battery test centers and three high-volume battery system plants in Finland and Germany. www.ioncor-batteries.com