The Finnish state is injecting an additional €40 million into the Keliber lithium project in Central Ostrobothnia, aiming to support the ramp-up phase of production. The investment forms part of a broader €200 million financing package intended to enable a phased start-up of operations.
The funding is channelled through the state-owned Finnish Minerals Group, strengthening its position in one of Europe’s most closely watched lithium developments.
Gradual ramp-up underway
The Keliber project has already attracted total investments of around €783 million. The latest funding round will primarily support the initial stages of mining and concentration operations.
The largest share of the new capital comes from majority owner Sibanye-Stillwater, which holds a 79.82 per cent stake. Finnish Minerals Group owns 20 per cent, with the remaining shares held by minor investors.
– The funding enables a phased ramp-up of operations, said CEO Matti Hietanen, according to company statements.
Ore extraction began in February at the Syväjärvi open-pit mine, located just inside Karleby municipality near the Kaustby border. At the same time, testing is ongoing at the concentrator in Kaustby, while the refinery in Karleby is expected to begin ramp-up later this year.
Strategic importance for the EU supply
Keliber is widely regarded as a key project for both Finland and the European Union, particularly in efforts to secure access to critical raw materials. Lithium is a crucial component in batteries used in electric vehicles and energy storage systems.
– Keliber is one of the flagship projects in Finland’s national battery strategy and helps strengthen both Finland’s and the EU’s self-sufficiency in critical raw materials, said Minister of Economic Affairs Sakari Puisto.
Minister for European Affairs and Ownership Steering Joakim Strand also highlighted the project’s significance.
– This is the first lithium project under construction in Europe, and it carries substantial strategic importance at both national and EU levels.
The project has been designated as strategic under EU raw materials legislation.
Heavy financing amid market uncertainty
Keliber has previously secured a €500 million “green loan” package. Of this, the European Investment Bank contributes €150 million, while seven commercial banks provide €350 million. State-owned Finnvera has also guaranteed loans worth €250 million.
Despite strong financial backing, uncertainties remain. Lithium prices have shown significant volatility in recent years, which affects the economic outlook for new projects.
– Any additional financing for the refinery will be decided later and depends, among other things, on market conditions, said Matti Hietanen.
Integrated production model
The project is one of the few in Europe to integrate the entire value chain – from mining to refining. However, such large-scale developments involve high capital costs and long payback periods, making them sensitive to fluctuations in demand and commodity prices.
Source: Yle
Fact check:
Keliber is a Finnish lithium project integrating mining, concentration, and chemical refining. It is considered a key EU initiative to reduce reliance on imported battery materials, but it remains exposed to price volatility and global competition.
![Schematic of a polymetallic nodule mining operation. From top to bottom, the three zoom-in panels illustrate the surface operation vessel, the midwater sediment plume, and the nodule collector operating on the seabed. The midwater plume comprises two stages: (i) the dynamic plume, in which the sediment-laden discharge water rapidly descends and dilutes to a neutral buoyancy depth, and (ii) the subsequent ambient plume that is advected by the ocean current and subject to background turbulence and settling.[1] Image: Wikipedia Commons, Kredit: Carlos Muñoz-Royo.](https://www.miningmetalnews.com/sites/default/files/styles/article_frontpage_small/public/media-cover-images/schematic-of-a-polymetallic-nodule-mining-operation-from-top-to-bottom-the-three_2_0.jpg?h=3df05eba&itok=fdvTZ2tH&u=1776673036)
![Schematic of a polymetallic nodule mining operation. From top to bottom, the three zoom-in panels illustrate the surface operation vessel, the midwater sediment plume, and the nodule collector operating on the seabed. The midwater plume comprises two stages: (i) the dynamic plume, in which the sediment-laden discharge water rapidly descends and dilutes to a neutral buoyancy depth, and (ii) the subsequent ambient plume that is advected by the ocean current and subject to background turbulence and settling.[1] Image: Wikipedia Commons, Kredit: Carlos Muñoz-Royo.](https://www.miningmetalnews.com/sites/default/files/styles/related_news_image/public/media-cover-images/schematic-of-a-polymetallic-nodule-mining-operation-from-top-to-bottom-the-three_2_0.jpg?h=3df05eba&itok=My_MmN9i&u=1776673036)
