KELIBER BATTERY GRADE LITHIUM PRODUCTION

Promoter – Financial Intermediary

KELIBER OY

Location

• Finland

Description

Mining and production of battery grade lithium (Li) hydroxide. The project comprises the successive development and mining of several Li-mineral ore mines, a concentrator plant to produce an ore concentrate and an innovative first-of-a-kind hydro-metallurgical processing plant to produce battery grade lithium hydroxide (LiOH) with a nominal capacity of 15 kt/a.

Additionality and Impact

The project will implement the first integrated high purity, battery grade Li hydroxide (LiOH) manufacturing facility in Europe, including mines, concentration and final refining. Moreover, it will be the first deployment at commercial scale of an innovative and breakthrough process for LiOH manufacturing that has a reduced environmental and carbon footprint compared to the existing predominant manufacturers. Lithium is a critical raw material due to its supply risk and economic importance for the EU and the transition in energy and transport.

The project addresses the several market failures. Imperfect competition is present in the field of the battery manufacturing supply chain, mainly served by dominant non-EU LiOH and Lithium Carbonate (LiCO) manufacturers. As well, imperfect and asymmetric information affects the Project, as the promoter is investing in innovative technology competing with established companies and technologies.

Along its positive environmental and climate externalities the project will support innovation in the battery supply chain and processing of critical raw materials and hence as well generate positive knowledge externalities. EIB is providing a substantial amount of senior financing to the Project, with a catalytic role, expected to crowd in other financiers. With the EIB participation, the Promoter will be able to diversify its funding sources and likely improve its financing conditions.

Objectives

The product is intended as a high-grade lithium hydroxide mainly for the Li-ion battery cell manufacturing industry in Europe.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 270 million

Total cost (Approximate amount)

EUR 723 million

Environmental aspects

The project concerns capital investments for the mining of lithium-rich rock deposits and for the processing into high purity lithium hydroxide, falling under the EIA Directive 2014/52/EU amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU. All environmental, health and safety issues including environmental and operational authorisations will be reviewed during the due diligence process.

Procurement

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation, then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 20/08/2024