Terrafame launches ramp-up of battery chemicals production

Terrafame, a subsidiary of Finnish Minerals Group, has started the ramp-up of production at its new plant in Sotkamo, said the company in a press release on Monday.

Terrafame completed the construction of the battery chemicals plant and equipment testing during the spring. The ramp-up of further processing of nickel-cobalt has now been initiated.

The main product of the plant is nickel sulphate, with a capacity sufficient for the production of about one million fully electric cars per year.

Pre-studies concerning the establishment of the plant were initiated in 2017, and earthwork construction work on the company’s industrial site was started up in 2018.

“The number of electric cars has grown worldwide at a considerable rate for several years now. Last year, Europe was the largest market for electric cars. Thanks to this trend, demand for battery chemicals and battery materials downstream in the value chain is surging and thus Terrafame is kicking off the production of battery chemicals at exactly the right time. This is a major step for the development of both Terrafame and the Finnish battery value chain more broadly,” said Matti Hietanen, CEO of Finnish Minerals Group.

Lauri Ratia, Chairman of Terrafame’s Board of Directors, highlights the extensive work the company has done on ramp-up, alongside the design and construction of the battery chemicals plant. He also emphasises how production at the new plant will affect the national economy.

“With battery chemicals production, Terrafame’s operations will account for, with all multiplier effects included, almost 20% of the gross domestic product of the Kainuu region and employ directly and indirectly over 5,500 people in Finland in total. The new business will also be material part in the total export of Finland,” said Ratia.

Joni Lukkaroinen, CEO of Terrafame said that Terrafame’s supply chain is responsible and transparent, helping it to stand out in the demanding international battery market. Last year, the company adopted a Sustainability Programme for 2020-2024.

“From day one, it has been clear to us that it is not enough to engage solely in metals recovery. By now starting up battery chemicals production, we can move forward in the processing chain and thereby increase the value of our products. Thanks to this work, our company’s profitability can develop even more robustly,” said Lukkaroinen.