The battery materials plant planned in Kotka received an environmental permit

The Regional State Administrative Agency for Southern Finland has granted an environmental permit to the battery materials plant project of Easpring Finland New Materials Oy. The decision is a major milestone for the approximately EUR 770 million investment project. Finnish Minerals Group owns 30 percent of Easpring Finland and has been involved in planning the project for several years.

The plant will produce cathode active material (CAM), a key component of lithium-ion batteries. Demand for these batteries is growing due to the electrification of transport and the need for energy storage for renewable electricity generation.

The plant’s production is estimated to average 60,000 tons of NMC (nickel-manganese-cobalt) cathode material per year, which would meet the needs of approximately 500,000 to 800,000 electric vehicles, depending on the size of the installed batteries. The plant site is located in the Keltakallio industrial area of Kotka, about eight kilometres from the city centre.

"The Kotka CAM plant will directly employ approximately 270 person-years when operational, and according to an assessment we commissioned from the consulting company Ramboll, it will generate approximately EUR 180 million in new tax revenue annually. CAM production is a new industry in Finland, and it responds to the demand for battery materials from European electric car factories. This is a more than welcome project for the Kymenlaakso region and the whole of Finland," says Matti Hietanen, CEO of Finnish Minerals Group.

"We are pleased with the positive permit decision, which allows us to continue developing the project. The Kotka plant will be the first NMC-based cathode active material production facility in Finland and will meet the needs of European battery factories. Together with our partners, we have an excellent opportunity to create significant new clean transition industry in Kotka," says Vesa Koivisto, Director at Easpring Finland New Materials.

The Regional State Administrative Agency processed the environmental permit application under the green transition priority procedure. The plant is scheduled to start operations in 2026.

Modelling image:
Kotka CAM-plant

More information for the media:

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

Vesa Koivisto, Chief Administrative Officer, Easpring Finland New Materials Oy
firstname.lastname(at)easpring.fi, +358 50 453 6322

Finnish Minerals Group
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

Easpring Finland New Materials Oy
Established in March 2024, Easpring Finland New Materials Oy is a joint venture of which Beijing Easpring Material Technology Co., Ltd., listed in ChiNext, owns 70% and Finnish Minerals Group 30%. The purpose of the company is to produce cathode active materials for the needs of the European production facilities of Easpring’s existing and new customers.