- Investment costs EUR 240 million, with funding from Finnish Minerals Group, Galena, Trafigura, and Sampo.
- Plant completion by end of 2020, commercial production starts early 2021.
- Plant to produce nickel and cobalt sulphates for EV batteries.
- Additional EUR 100 million financing agreed on 24 October 2018.
Investment Decision
On 24 October 2018, Terrafame’s Board of Directors approved the investment in a new battery chemicals plant at their Sotkamo site in Finland. The plant will produce chemicals for electric vehicle batteries (EVB), leveraging existing technology agreements with key suppliers.
Project Timeline
The plant is scheduled for completion by the end of 2020, with commercial production starting in early 2021. This project aims to enhance Terrafame’s profitability and provide skill development opportunities for employees.
Funding Details
The total investment cost is approximately EUR 240 million. A financial package of USD 200 million was previously agreed upon in November 2017, involving Finnish Minerals Group, Galena Asset Management, Trafigura Group, and Sampo Plc. An additional EUR 100 million financing package was agreed upon on 24 October 2018, including a EUR 43 million loan from Trafigura and a EUR 60 million equity investment from Galena Private Equity Resources Fund and Finnish Minerals Group.
Production Focus
The new plant will produce nickel and cobalt sulphates, essential for EV batteries. This move positions Terrafame further along the value chain, closer to end-users, and supports the reduction of carbon dioxide emissions in transportation.
Financial Arrangements
Finnish Minerals Group will reallocate EUR 30 million from a previous EUR 50 million investment commitment to fund the project. This reallocation ensures that Finnish Minerals Group’s financial responsibility in Terrafame Plc does not increase, and no new funding is required from the State of Finland. Additional details on the financing entity are available on Finnish Minerals Group’s website.
