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    HomeNewsEU Backs Finland’s Keliber Project with €150 Million to Strengthen Lithium Supply...

    EU Backs Finland’s Keliber Project with €150 Million to Strengthen Lithium Supply for Electric Vehicles

    EU Backs Finland’s Keliber Project with €150 Million to Strengthen Lithium Supply for Electric Vehicles

    (IN BRIEF) The European Investment Bank (EIB) has committed €150 million to support the Keliber lithium project in Finland, operated by Sibanye-Stillwater. This investment is part of a €500 million package aimed at establishing the EU’s first integrated battery-grade lithium hydroxide production facility, which will help secure a sustainable supply of lithium for the growing electric vehicle market. The project is a key component of the EU’s strategy to enhance energy independence and support the green transition.

    (PRESS RELEASE) LUXEMBOURG, 24-Aug-2024 — /EuropaWire/ — In a significant move to enhance Europe’s access to critical raw materials for the green transition, the European Investment Bank (EIB) has announced a €150 million loan to support the development of the Keliber lithium project in Finland. This financing is part of a larger €500 million package aimed at establishing the EU’s first integrated battery-grade lithium hydroxide production facility, a key component for the electrification of transport.

    The Keliber project, operated by Finnish mining company Keliber Oy, a subsidiary of Sibanye-Stillwater, will focus on extracting and processing lithium from one of Europe’s largest lithium reserves in the Kaustinen region. The initiative is backed by the European Commission’s InvestEU programme, which seeks to mobilize substantial investments across Europe to drive sustainable growth.

    This investment marks the first time the EIB has supported the mining of critical raw materials within the EU, reflecting the growing importance of lithium for the European market. As the demand for electric vehicles surges, securing a stable and sustainable supply of battery materials has become crucial for the EU’s climate goals and energy independence.

    The project will not only contribute to the EU’s strategic autonomy in raw materials but also bolster the region’s resilience in the rapidly expanding battery sector. The production of battery-grade lithium hydroxide is set to begin in 2025, positioning Keliber as a pioneer in Europe’s green transition.

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

    The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.

    All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

    Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

    The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    About the Sibanye-Stillwater’s Keliber lithium project

    The Keliber lithium project is the most advanced lithium project in Europe dedicated to supplying the electric vehicle (EV) battery sector. Sibanye-Stillwater is planning to implement the best available technologies, combined with the integrated business model and close proximity of mining and refining facilities meaning that Keliber will be amongst the world’s most CO2 efficient producers of lithium hydroxide. The Keliber lithium mining and battery chemical project is expected to produce up to 15,000 tonnes per annum battery-grade lithium hydroxide with production from third-party ore expected to start in 2025 and from own ore in 2026.

    About Sibanye-Stillwater

    Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.

    Sibanye-Stillwater is one of the world’s largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally.

    Media Contacts:

    Kristiina Randmaa
    k.randmaa@eib.org
    +352 4379 – 72894

    Press Office

    press@eib.org
    +352 43791

    SOURCE: European Investment Bank

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    First published in this link of EuropaWIRE.

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