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| Neometals |
Finland grants Neometals €48.7mn for vanadium plant support for its VRP1 project in Pori. The grant boosts confidence, but it comes with strict financing conditions. Meanwhile, Europe is pushing harder for local critical minerals capacity.
Grant conditions tie funding to €400mn project financing
The grant depends on Neometals securing about €400mn in total project financing. The company targets a 40% equity share and 60% debt share. As a result, lenders and partners will shape the final project economics.
Neometals previously considered scrapping VRP1 in October 2023 to protect cash. The company faced weak vanadium pentoxide and ferro-vanadium prices in Europe. However, a binding five-year offtake with Glencore provided guaranteed cash flow.
The project later secured €1mn in two tranches from EIT RawMaterials support. Meanwhile, the EU classified vanadium as a critical raw material under the 2024 act. Therefore, Finland grants Neometals €48.7mn for vanadium plant funding as a policy-aligned signal.
VRP1 output targets 9,000 t/yr amid tight global supply
VRP1 targets about 9,000 tonnes per year of output once financing closes. Construction could take up to three years after full funding. Therefore, the schedule now depends on financial close timing.
Global vanadium production remains highly concentrated in two countries. Russia and China produced a combined 91% of last year’s 100,000 tonnes. Meanwhile, European buyers want supply security for steel alloys and grid storage. As a result, Finland grants Neometals €48.7mn for vanadium plant support that fits a broader reshoring trend.
The Metalnomist Commentary
Conditional grants reduce early risk, but they do not fix weak price cycles. Meanwhile, recycled feedstock can improve cost resilience versus primary supply. Therefore, VRP1 will hinge on financing discipline and consistent product qualification.
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