Battery cell factory project in Kotka without partner as Svolt withdraws from Europe

The planned battery cell factory in Kotka is currently without a partner. Matti Hietanen, CEO of Finnish Mineral Processing, stated that the project has not progressed as swiftly as expected earlier this year. “We need to find a new partner for the project. Cooperation with Svolt will not continue,” he said.

Chinese battery manufacturer Svolt had previously expressed interest in building a large battery cell factory in Finland, specifically in Kotka, by the end of 2023. The main negotiating partners in the project have been the state-owned Finnish Mineral Processing and Svolt. Finnish Mineral Processing is actively promoting the development of the battery industry in Finland.

However, reports indicate that Svolt is pulling back from Europe and has halted two battery factory projects in Germany. The company cited that the development of electric vehicles in Europe has not met its expectations.

Despite these setbacks, the promotion of the battery cell factory continues. The project company associated with Finnish Mineral Processing has submitted an environmental impact assessment regarding the battery cell factory to the Southeast Finland ELY Centre. The factory is planned for the Keltakallio industrial area in Kotka, alongside a proposed battery materials factory, which received an environmental permit from the Regional State Administrative Agency on Tuesday.

Hietanen confirmed that the company’s focus is now on advancing the battery materials factory, but the goal remains to initiate the cell factory project in Kotka in the future.

In total, three factories, including the battery materials factory in Hamina—which has received an environmental permit, although it has been appealed—are under consideration. The battery cell factory, still in the planning stage, is expected to be the largest. The material factories would employ approximately 600 people, while the cell factory estimates range between 2,500 and 9,900 jobs. Finnish Mineral Processing is involved in all battery projects, promoting the development of the battery industry in Finland.