Today’s announcements highlight the importance of mining and battery industry in the development of European industry
Today, Finnish Minerals Group published results of a preliminary report on the conclusions concerning the Sokli mining project and announced a new cathode materials project, which is being prepared in cooperation with FREYR Battery in Vaasa. The announcements are part of a larger development that emphasizes the relevance of mining and battery industry in Europe today.
16. February 2023
Developing the mining and battery industry helps Finland to meet the materials needs of the green transition, build self-sufficient production of critical materials and increase export value by improving the processing degree of minerals.
PRESS RELEASE: Scoping study of Sokli mining project completed – would significantly strengthen Finnish mineral production
PRESS RELEASE: Finnish Minerals Group and FREYR Battery collaborate to develop a cathode material plant in Finland
Achieving carbon neutrality requires considerable investments from transportation and industry
The European Union has committed to achieving climate neutrality by 2050. By 2030, the EU’s net emissions should already reduce by at least 55% compared to the 1990 emission level.
The emission reductions require considerable changes in several sectors of society such as industry and transportation. The development of low-emission technologies and sustainable production chains reduces emissions and also creates a solid foundation for future growth in Europe – environmentally friendly technologies will be needed around the globe.
Both the world’s leading car manufacturers and the challengers that have entered the car market are currently competing fiercely for the raw materials needed in electric vehicle batteries. The changing needs require industry to make a rapid transition, while setting up mines that produce raw materials needed in batteries, for example, entails long-term work.
“Achieving climate neutrality calls for substantial investments from transportation and industry. The electrification of transportation and sustainable battery production are at the core of the green transition. We do pioneering work that Finland needs to build a sustainable and traceable battery value chain,” says Vesa Koivisto, SVP, Battery Value Chain at Finnish Minerals Group.
On Tuesday, February 2, 2023 the European Parliament voted for new CO2 emissions reduction targets for new passenger cars and light commercial vehicles. In practice, the voting result means banning of new gasoline and diesel cars from 2035 onwards.
Building a new industry creates self-sufficiency
As the global situation has changed, battery materials production has become a central industry also from another perspective besides climate aspects. E-mobility increases our societies’ dependency on rare earth elements. In her State of the Union 2022 speech, President of the European Commission Ursula von der Leyen highlighted that Europe must avoid falling into the same dependency in terms of these materials as it once did with oil and gas. Building European production capacity is key.
“With a European battery value chain, we can produce materials needed in future technologies transparently, while considering climate aspects and human rights. Self-sufficiency generates security and keeps Europe’s wheels in motion despite changes in global political power relations,” states Jani Kiuru, SVP, Raw Materials at Finnish Minerals Group.
The new industrial sector will also generate considerable economic and employment growth. Increasing the added value of Finnish minerals creates significant new export opportunities for the materials that are increasingly in demand.
“Finland needs economic growth and new jobs. At initial capacity, the plants that are under way in Kotka and Hamina alone are estimated to increase Finland’s gross domestic product by EUR 495 million. The two plants are estimated to yield EUR 214 million of new tax revenue annually, and their direct employment effect is approximately 630 person-years,” says CEO of Finnish Minerals Group Matti Hietanen. “Now is exactly the right time to expedite the building of a Finnish battery value chain.”
Further information for the media:
Matti Hietanen, CEO, Finnish Minerals Group
firstname.lastname(at)mineralsgroup.fi, +358 40 823 8806
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
16. February 2023