Battery materials plant in Finland starts construction; jv with China’s Easpring
Finnish Minerals Group and China’s Beijing Easpring Material Technology have decided to start the construction of the cathode active material (CAM) plant. The EUR800 million plant to be constructed in Kotka, Finland will produce, CAM, which is needed to produce lithium-ion batteries. The plant’s first-stage capacity will be 60,000 tonnes of cathode active material per year. The plans also include the possibility of expanding production in the future.
The investment project is carried out by Easpring Finland New Materials Oy, established in 2024, of which Finnish Minerals Group owns 30% and Beijing Easpring Material Technology owns 70%.
The value of the investment project is approximately EUR800 million. In addition to the funding from the owners, the project will seek financing through external loans and the clean transition aid scheme for industrial investments. To implement the project, the Finnish State will capitalise Finnish Minerals Group with EUR 100 million.
“Our partner, Beijing Easpring Material Technology, is one of the world’s leading companies developing and producing cathode active material, and we have been cooperating with them for several years. With the Kotka CAM plant, we are creating an entirely new kind of industry in Finland related to the production of lithium-ion batteries,” says Matti Hietanen, CEO of Finnish Minerals Group. “Even on a European scale, the plant is a spearhead project for the industry and an important step forward for the Finnish battery value chain and battery business.”
”Through this strategic investment in Kotka, we establish a European base from where we will be able to serve the needs of European customers. Our joint investment with Finnish Minerals Group also contributes to Finnish Government’s strategy to build a battery value chain in Finland. Along our planning process, we have received good support from the City of Kotka, regional development company Cursor and many other partners, and we are happy to now reach the milestone of starting the plant construction,” says Guan Zhibo, CEO of Beijing Easpring Material Technology.
The permit authorities processed the plant’s environmental permit under the green transition priority procedure, and it became legally binding in December 2024. Approximately 80 hectares have been reserved for the project in the Keltakallio industrial area in Kotka, and a lease for the 27.8 hectares needed for the first phase was signed in January 2025.
At first-stage capacity, the plant would directly employ approximately 270 people. In addition, it will create demand for labour already during construction, also through multiplier effects. The construction will start in the spring of 2025, and the goal is to launch commercial production in 2027.
