Finland has the opportunity to become one of Europe’s leading suppliers of critical minerals for batteries, electrification and the defence industry. According to Business Finland, the country’s mining sector could double its turnover over the coming years if it succeeds in attracting investment, expanding downstream processing and maintaining stable regulatory conditions. However, experts warn that inconsistent tax policies could undermine the sector’s long-term growth.
The global transition towards electrification, clean energy and digitalisation is driving unprecedented demand for strategic raw materials such as lithium, nickel, cobalt, graphite and rare earth elements.
For Finland, this represents a historic opportunity.
“The potential is enormous and still not fully understood,” says Satu Penttinen, Programme Director of Business Finland’s Zero Waste Mining and Critical Minerals initiative, in an interview with Kauppalehti.
Europe is seeking domestic raw materials
For many years, Europe has relied heavily on imported critical minerals, particularly from China.
Russia’s invasion of Ukraine and growing geopolitical tensions surrounding global supply chains have fundamentally changed the way governments view raw material security.
Today, critical minerals are no longer regarded solely as industrial commodities but also as strategic assets essential for economic resilience and supply security.
This shift is reflected in the European Union’s Critical Raw Materials Act, which aims to increase domestic mining, processing and recycling of strategic minerals across Europe.
Finland holds a uniquely strong position
Finland is already one of Europe’s leading producers of several strategic metals.
The country possesses significant deposits of:
- Lithium
- Nickel
- Cobalt
- Copper
- Platinum group metals
- Graphite
In recent months, several major exploration successes have further strengthened Finland’s position, including the significant graphite discovery at Siikalatva, which has been described as one of the most promising graphite deposits in Europe.
At the same time, investments continue in lithium projects, battery materials and metal processing facilities across the country.
According to Business Finland, the combination of abundant geological resources, advanced mining technology and a strong research ecosystem gives Finland an exceptional competitive advantage.
More than mining
Business Finland stresses that the greatest economic opportunity extends far beyond opening new mines.
The highest value lies across the entire supply chain—from mineral exploration and mining to mineral processing, battery materials, recycling and advanced mining technologies.
Finnish companies are already internationally recognised leaders in mining equipment, mineral processing technologies, industrial automation and digital mining solutions.
This allows Finland to export not only raw materials but also technology and expertise to mining operations worldwide.
Business Finland’s Zero Waste Mining and Critical Minerals programme has therefore been designed to strengthen the entire sustainable mining ecosystem through research, innovation and international investment. The programme has a budget of approximately EUR 10 million for the period 2025–2026.
The mining sector could double
According to Satu Penttinen, Finland’s mining industry has the potential to grow much faster than many observers currently expect.
She points to forecasts showing that global demand for critical minerals will increase dramatically over the next two decades as electric vehicles, electricity grids, battery storage, wind power, solar energy and defence industries continue to expand.
The International Energy Agency (IEA) estimates that demand for several critical minerals could increase by as much as sixfold by 2040. At the same time, technologies related to sustainable mining and mineral recycling are expected to become major global growth markets.
Tax policy could determine future investments
Penttinen also warns that mining investments require long-term policy stability.
Developing a new mine often takes between ten and fifteen years before commercial production begins.
Frequent changes to tax regimes, permitting processes or investment conditions could encourage investors to allocate capital elsewhere.
This is particularly important at a time when Canada, Australia, the United States and several EU member states are competing aggressively to attract the same mining investments.
According to Business Finland, predictable and long-term policy frameworks will therefore become one of Finland’s most important competitive advantages.
Circular economy is the next frontier
The future of Finland’s mineral industry is not limited to new mining projects.
Business Finland sees major opportunities in recycling, recovering valuable metals from mine waste and developing circular economy solutions.
The objective is to reduce mining waste, increase metal recycling and generate higher value-added production within Finland.
These ambitions align closely with the European Union’s goal of sourcing at least 25% of its strategic raw materials from recycling by 2030.
A new engine for economic growth
For Finland, the opportunity extends far beyond individual mining projects.
If investment continues, the expanding mining and battery value chain could become one of the country’s most important export industries over the coming decades.
The green transition, accelerating electrification and Europe’s growing focus on supply security are transforming critical minerals into some of the world's most strategic resources.
With its abundant mineral wealth, technological expertise and expanding industrial ecosystem, Finland is well positioned to become one of Europe’s leading beneficiaries of this transformation.
Sources: Kauppalehti, Business Finland, EU Critical Raw Materials Act, International Energy Agency (IEA).
