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The battery materials plant planned in Kotka proceeds to construction phase

Finnish Minerals Group and Beijing Easpring Material Technology have decided to start the construction of the CAM plant.

Published

20. March 2025

The plant to be constructed in Kotka, Finland will produce cathode active material, CAM, which is needed to produce lithium-ion batteries. The plant’s first-stage capacity will be 60,000 tonnes of cathode active material per year. The plans also include the possibility of expanding production in the future.

The investment project is carried out by Easpring Finland New Materials Oy, established in 2024, of which Finnish Minerals Group owns 30% and Beijing Easpring Material Technology owns 70%.

The value of the investment project is approximately EUR 800 million. In addition to the funding from the owners, the project will seek financing through external loans and the clean transition aid scheme for industrial investments. To implement the project, the Finnish State will capitalise Finnish Minerals Group with EUR 100 million.

“Our partner, Beijing Easpring Material Technology, is one of the world's leading companies developing and producing cathode active material, and we have been cooperating with them for several years. With the Kotka CAM plant, we are creating an entirely new kind of industry in Finland related to the production of lithium-ion batteries,” says Matti Hietanen, CEO of Finnish Minerals Group. “Even on a European scale, the plant is a spearhead project for the industry and an important step forward for the Finnish battery value chain and battery business.”

”Through this strategic investment in Kotka, we establish a European base from where we will be able to serve the needs of European customers. Our joint investment with Finnish Minerals Group also contributes to Finnish Government’s strategy to build a battery value chain in Finland. Along our planning process, we have received good support from the City of Kotka, regional development company Cursor and many other partners, and we are happy to now reach the milestone of starting the plant construction,” says GUAN Zhibo, CEO of Beijing Easpring Material Technology.

The permit authorities processed the plant’s environmental permit under the green transition priority procedure, and it became legally binding in December 2024. Approximately 80 hectares have been reserved for the project in the Keltakallio industrial area in Kotka, and a lease for the 27.8 hectares needed for the first phase was signed in January 2025.

“The Kotka CAM plant will be a state-of-the-art facility with a production process based on a high level of automation and proven technology. The basic design of the plant also provides for a situation where the market demands and technologies continue to develop and ensures that we can respond to these developments,” says Timo Strengell, SVP of Battery Value Chain at Finnish Minerals Group.

At first-stage capacity, the plant would directly employ approximately 270 people. In addition, it will create demand for labour already during construction, also through multiplier effects. The construction will start in the spring of 2025, and the goal is to launch commercial production in 2027.

 

Plant illustrations:

www.mineralsgroup.fi / Topical

Kotka CAM plant, image 1
Kotkan CAM plant, image 2
Kotkan CAM plant, image 3

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