New factory for battery materials receives environmental permit in Kotka, Finland

A new factory for battery materials in Kotka, Finland, has received an environmental permit. The permit has been granted to Easpring Finland New Materials, a joint venture established by Finland’s mineral processing sector and Beijing Easpring Material Technology. The factory, which is set to be built in the Keltakallio industrial area about eight kilometers from downtown Kotka, is expected to create around 300 jobs and begin operations in 2026.

The facility will produce cathode active materials for lithium-ion batteries, with an estimated investment of approximately €770 million. It is projected to produce around 60,000 tons of cathode active material annually, sufficient to supply the battery needs of 500,000 to 800,000 electric vehicles, depending on battery size.

The factory will primarily affect land use in the area and increase traffic. Wastewater generated by the facility will be treated on-site before being sent to a wastewater treatment plant. The project is designed to avoid groundwater areas and flood risk zones, while excess thermal energy from the factory will be integrated into the city’s district heating network.

Three factories are planned in total for Haminan and Kotka. The most advanced project is the Hamina battery materials factory, which has also received an environmental permit, although it has faced appeals. In addition to the battery materials factory in Kotka, a cell factory is under planning, which is expected to be the largest of the projects, potentially providing jobs for 2,500 to 9,900 people. All battery projects involve Finland’s mineral processing sector along with three different Chinese companies. The battery industry has shown significant interest in the Kotka region for some time.