Finland: EU and Sibanye-Stillwater, through its Keliber lithium project, join forces in €150 million deal to improve EU access to and resilience in battery materials

This article is published in association with European Investment Bank.

• EIB-led credit package of €150 million development of lithium production in Finland for the EU. Lithium is critical raw material for the electrification of transport.
• Sibanye-Stillwater’s Keliber lithium project aims to become EU’s first integrated lithium hydroxide producer dedicated to supplying the European market directly.
• This agreement was facilitated by the InvestEU programme, which aims to trigger over €372 billion in additional investment over the period 2021-2027.

The European Investment Bank (EIB) is spearheading a €150 million out of a €500 million financing package for Keliber Oy, a Finnish mining and battery-material processing company. Keliber Oy is a subsidiary of the diversified mining and metals processing Group Sibanye-Stillwater, with Finnish Minerals Group (FMG) as a minority shareholder. The funding aims to assist the EU meeting the increasing demand for lithium in the electrification of transport. The agreement supports the establishment of mining and processing facilities in the Kaustinen area in Finland, which is among Europe’s largest lithium reserves. 

The EIB credit package consists of a €150 million direct loan from the EIB. Underlining the importance of lithium for Europe, the European Commission is providing a guarantee for the direct financing part under the InvestEU programme. This loan marks the first EIB support for the mining of critical raw materials in the EU.

“This loan is an important step towards the EU’s strategic autonomy,” said EIB Vice-President Thomas Östros, responsible for EIB operations in Finland. “This is the first mining transaction in support of critical raw materials that we finance in the EU, underlining that this topic is among the EIB Group’s key priorities. Our partnership with Sibanye-Stillwater’s Keliber lithium project aims to improve the EU’s access to its own battery materials, while reinforcing the block’s climate and energy resilience.”

By enhancing the EU´s access to lithium, the project strengthens European resilience in battery materials while contributing to sustainable and environmentally friendly transport. Lithium is a key material in high-performance Li-ion rechargeable batteries for electric vehicles, supporting the decarbonisation of road transport.

Battery-grade lithium is considered a critical raw material by the EU due to its economic importance and potential supply shortages. As a result of the project, Keliber is set to become the first integrated commercial-scale battery-grade lithium hydroxide producer in the EU. 

Mika Seitovirta, Chief Regional Officer of Sibanye-Stillwater Europe comments: “This is a significant step forward for our battery minerals strategy in Europe. The €500 million green financing package is a key milestone for Sibanye-Stillwater’s Keliber lithium project. The package provides cost-effective funding to complete the development of the unique Keliber lithium project, aiming to be the first integrated battery-grade lithium operation in Europe. We are most delighted with the strong support from the European Investment Bank. Sibanye-Stillwater’s Keliber’s lithium project is expected to significantly strengthen Europe’s self-sufficiency of this critical raw material in the green transition.”

Sibanye-Stillwater’s Keliber lithium project aims to produce battery-grade lithium from its own mineral resources and set up a lithium ore concentrator facility as well as a lithium hydroxide refinery. The plant will deploy an innovative, breakthrough manufacturing process at commercial scale for the first time. Construction of the plant has already begun and production of lithium hydroxide is scheduled to begin in 2025.

Background information

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.