CNGR Advanced Material withdraws from the pCAM plant project in Hamina

Finnish Minerals Group’s partner CNGR Advanced Material has decided to withdraw from the planned precursor cathode active material (pCAM) plant project in Hamina, Finland due to a challenging market situation. China and the Pacific region are experiencing significant overcapacity of the pCAM used in lithium-ion battery production, forcing companies to make adjustments. This is also reflected in the planned investment projects in Europe.

The Hamina project has been advanced by CNGR Finland Oy, of which Finnish Minerals Group has earlier owned 40% and CNGR Advanced Material 60%. Finnish Minerals Group has now acquired the entire share capital of the joint company, becoming the company’s sole owner.

“For the project, it is of course unfortunate that the global pCAM market situation has become so challenging that it is also reflected in Finland and the Kymenlaakso region. However, market situations evolve constantly, so we will take our time to review the preconditions for continuing the project on a different basis,” says Matti Hietanen, CEO of Finnish Minerals Group.

“Slower EV adoption in the EU and ambiguity in regulations led to the neccesity to realign CNGR Advanced Material’s international investments. Following a broader assessment, CNGR has decided to pause its investment in the Hamina pCAM investment. Though the project holds significant potential, the company is shifting focus to align with current market dynamics and prioritize its existing operations while remaining responsive to future opportunities,” says Dani Widjaja, Vice President at CNGR.

In February 2024, the project company CNGR Finland was granted an environmental permit for the plant that is planned to be built in the deep-water port in Hamina. The permit was processed in the permit authority’s priority processing procedure for green transition projects. This procedure is reserved for projects that promote ecologically sustainable economy and growth. Appeals against the permit are still pending in the Vaasa Administrative Court, which is expected to decide on the permit in the spring of 2025.

According to a survey commissioned in summer 2024 from Taloustutkimus, a Finnish market research company, the Hamina pCAM project has strong local support. Based on the results, 83% of locals support the project when it is implemented in accordance with the environmental permit conditions. The permit conditions determined by the Regional State Administrative Agency for Southern Finland relate to discharges to surface water and air, energy consumption efficiency, storage, noise, waste, risk management, exceptional circumstances, and the monitoring of operations.

Finnish Minerals Group is currently developing also a cathode active material (CAM) plant project in Kotka with another partner company. The two projects are independent from each other, and the plans concerning the pCAM project in Hamina have no impact on Kotka’s planned CAM plant, the construction of which will begin in April 2025.

Further information for media:

Matti Hietanen, CEO, Finnish Minerals Group
firstname.lastname(at)mineralsgroup.fi, +358 40 823 8806

Timo Strengell, SVP, Battery Value Chain, Finnish Minerals Group
firstname.lastname(at)mineralsgroup.fi, +358 40 738 4860

The mission of Finnish Minerals Group is to responsibly maximise the value of Finnish minerals. We manage the State’s mining industry shareholdings and strive to develop the Finnish value chain of lithium-ion batteries. Through our work, we contribute to Europe moving towards electric transport and a more sustainable future. www.mineralsgroup.fi