Keliber advances lithium projects in Central Ostrobothnia despite market challenges

Keliber, a mining company in Finland, is currently engaged in two major construction projects in Central Ostrobothnia. At the Kokkolan chemical plant, equipment installations are underway, while the Kaustinen facility recently celebrated its milestone topping-out ceremony. The total cost of the project, including startup expenses, is estimated at €750 million, with a third allocated to the Kaustinen plant and two-thirds toward the construction of the lithium refining facility in Kokkolan.

However, the current market scenario is challenging, as the global price of lithium has plummeted to one-eighth of its peak two years ago. European automakers are facing difficulties due to a decline in electric vehicle demand. Notably, the Swedish battery manufacturer Northvolt is reportedly on the verge of bankruptcy and is considering significant layoffs.

Despite these challenges, Keliber is on track to become the first company in Europe to refine lithium sourced from its own ore. CEO Hannu Hautala remains optimistic about the profitability of production across all market conditions. “We are confident that our efficient supply chain will remain competitive, whether the price is at the current $10,000 per ton or the previous $80,000,” he asserted.

Keliber’s primary shareholder is South Africa’s Sibanye Stillwater, which holds approximately 80% of the company. The Finnish state-owned Finnish Mineral Processing has invested about €55 million for a 20% stake, emphasizing the project’s national significance. Furthermore, Timo Kärkkäinen, the investment director at Finnish Mineral Processing, highlighted the importance of this initiative as part of Finland’s battery strategy and hopes for similar state support to develop these projects, as Finland possesses significant mineral resources compared to other European countries.