Keliber Launches Europe’s First Battery-Grade Lithium Mining Operation
In the chill of a Finnish winter, a significant chapter in Europe’s lithium production story has begun. Mining firm Keliber has officially kicked off lithium mining in Kaustinen, marking the launch of Europe’s first battery-grade lithium processing operation in the Kokkola region. This much-anticipated project promises to generate around 350 jobs and establishes an essential production chain, aiming to reduce dependency on imports from China.
On a chilly Wednesday, invited guests and reporters gathered to witness a historic moment as the first spodumene veins were blasted from the rock at the Syväjärvi open pit mine. “This is a celebration,” declared CEO Hannu Hautala, who has led the company since its inception 25 years ago, built upon a local farmer’s discovery of the lithium deposit over six decades ago.
As the cold winds whipped across the site, participants watched as the boulders poised to produce Europe’s first battery-grade lithium were unearthed. The mining area sprawls across three municipalities: Kaustinen, Kokkola, and Kronoby, with the Syväjärvi quarry comfortably nestled within Kokkola’s city boundaries.
Lithium, a crucial component in the manufacture of batteries that power everything from mobile phones and electric vehicles to backup systems for rail transport, is poised to become an even more critical resource as industries pivot toward large-scale energy storage solutions. Yet, the project faced numerous hurdles, primarily due to funding challenges, which were ultimately resolved in late 2022 thanks to a significant investment from South Africa’s Sibanye-Stillwater.
However, the price of lithium has undergone dramatic fluctuations since then. Upon Sibanye-Stillwater’s investment, prices were at a level ten times higher than they fell to last summer. Although there has been a slight rebound, current prices remain below the five-year average. Hautala is confident, however, stating that production will now enter a phase of profitability.
Sibanye-Stillwater holds an 80 percent stake in Keliber, while the remaining 20 percent is owned by the Finnish Minerals Group, a state-run entity.
A Unique European Production Chain
What sets Keliber apart is its fully integrated production chain—an uncommon setup among European lithium operations. While Portugal boasts substantial lithium reserves, it primarily sells raw ore due to the absence of refining facilities. Similar situations exist elsewhere; for instance, a major lithium project in Serbia has recently been put on hold by mining giant Rio Tinto.
Currently, lithium hydroxide factories operate in Germany, Poland, and Hungary, with another under construction in southeast Finland’s Kotka. Hautala emphasized, “We’ll be the first to introduce European production, presenting a distinct competitive edge due to our shorter delivery distances compared to imports from China.”
Once extracted from the Syväjärvi site, the lithium-bearing boulders will be crushed and transported a short distance to the Päiväneva enrichment plant. From there, the concentrate will make its way via truck to Kokkola, where it will be refined into lithium hydroxide for shipment to battery manufacturers.
The combined costs for constructing the quarry, concentrator, and chemical plant are projected to reach approximately 800 million euros. Operations at the Päiväneva concentrator are slated to commence this spring, followed by the Kokkola chemical plant later this year.
Beyond Syväjärvi, Keliber has plans in place to initiate mining in six other areas across Kaustinen, Kokkola, and Kronoby. With estimates suggesting the main mining sites of Syväjärvi and Rapasaari could sustain operations for up to 18 years, the company remains committed to exploring further deposits to bolster its future resources.
As Europe seeks to carve out a sustainable path in the battery supply chain, Keliber stands as a pivotal player in this evolving energy landscape.