Finland Sokli Phosphate Project Gains State Backing as Europe Seeks Raw Materials Security

Finnish Minerals Group

The Finland Sokli phosphate project has gained new momentum after the Finnish government approved a €65mn investment in Finnish Minerals Group. The funding will support the next development phase of the Sokli deposit in Savukoski. Phosphate is the main target, but rare earths also add strategic value. As a result, the Finland Sokli phosphate project is becoming more important to Europe raw materials security.

This matters because Sokli is not only a national mining project. The deposit could cover up to one fifth of EU phosphate demand if it moves into production. That gives Finland a stronger potential role in Europe’s fertilizer and strategic minerals base. Therefore, the Finland Sokli phosphate project now carries significance well beyond Finland.

The government will use the funding for a feasibility study running from 2026 to 2028. The work will include a pilot mine and a pilot concentrator. Meanwhile, the project will also assess the potential for vermiculite, niobium, and rare earth production. Consequently, the Sokli rare earth project is being framed as a multi-mineral industrial asset.

Sokli Rare Earth Project Expands the Strategic Case

The Sokli rare earth project strengthens the wider case for development because it adds strategic minerals to a phosphate-led deposit. Europe wants more secure access to raw materials that support industry, fertilizers, and advanced manufacturing. Rare earths help make Sokli more relevant to that agenda. As a result, the Sokli rare earth project could gain attention beyond traditional mining investors.

The development timeline is still early, but it is moving forward. The government said phosphate and iron concentrates production could begin between 2027 and 2029. That target will depend on study results, permitting, and pilot work. However, state support gives the project more credibility than before.

Finnish Minerals Group will also begin an environmental impact assessment in 2026. That step starts the environmental permitting process and gives the project a clearer regulatory path. Meanwhile, Sokli has already applied for a pilot operations permit, with a decision expected in summer 2026. Therefore, the Finland Sokli phosphate project is now entering a more serious execution stage.

Europe Raw Materials Security Gives Sokli Wider Relevance

Europe raw materials security is the bigger reason Sokli matters now. The EU is pushing to strengthen supply chains for critical and strategic minerals across the bloc. Finland wants Sokli to fit directly into that policy direction. As a result, the project is being positioned as both an industrial and geopolitical asset.

Sokli Oy applied in January 2026 for strategic status under the Critical Raw Materials Act. That application reflects the project’s phosphate and rare earth potential. The European Commission has not yet made a decision, but the move shows clear alignment with EU priorities. Therefore, the Finland Sokli phosphate project may become part of a broader European supply chain strategy.

The wider industrial logic is straightforward. Europe needs more domestic and regional sources of key raw materials. Projects like Sokli can reduce import dependence while creating new processing and mining capacity inside the bloc. Consequently, Finland is trying to move Sokli from geological potential to strategic industrial relevance.

The Metalnomist Commentary

Sokli matters because it combines phosphate scale with rare earth optionality at a time when Europe wants both supply security and industrial depth. The real test now is execution. If Finland can move the project through pilot work and permitting, Sokli could become one of the more important multi-mineral developments in northern Europe.

Easpring Launches Lithium CAM Production in Finland to Supply European Battery Market

Finnish Battery Group

Joint Venture with Finnish Minerals Backs Strategic CAM Investment in Kotka

Beijing Easpring has initiated lithium CAM production in Finland, targeting Europe’s expanding battery manufacturing sector. The new facility in Kotka, southeast Finland, is being developed through a joint venture with Finnish Minerals Group (FMG) and its subsidiary Finnish Battery Chemicals (FBC). The project, valued at €800 million, marks a pivotal step in establishing localized cathode active material (CAM) production in the EU.

500,000t Capacity Aims to Meet Surging European Battery Demand

The facility will produce 500,000 tonnes/year of CAMs, including 200,000 tonnes of NCM and 300,000 tonnes of LFP/LMFP. The first phase targets 60,000 tonnes of NCM, aligning with growing EV demand and localized supply strategies. While the launch date remains undisclosed, Easpring emphasized its commitment to sustainability and innovation in lithium CAM production in Finland.

Strengthening Finland’s Battery Value Chain and Industrial Sovereignty

The investment strengthens Europe’s ability to produce battery-grade materials domestically, reducing reliance on imported inputs. FMG CEO Matti Hietanen highlighted the project's importance to Finland’s battery value chain, while Easpring Chair Chen Yanbin noted its role in setting global CAM standards. The company already supplies major OEMs including SK On, LGES, and Samsung SDI, and sources materials from CNGR, Albemarle, and Huayou Cobalt.

The Metalnomist Commentary

The move to localize lithium CAM production in Finland aligns with Europe’s EV supply chain autonomy goals. Easpring’s investment marks a strategic pivot toward resilient, regional battery materials manufacturing that could reshape EU-China industrial partnerships.

Easpring Finland CAM Plant Construction to Begin in 2025

Easpring Finland

Chinese-Finnish joint venture targets 60,000 t/yr cathode material output by 2027

Easpring Finland launches €800mn CAM plant project

Easpring Finland CAM plant construction will begin in April 2025, targeting commercial operations by 2027. The joint venture includes Beijing Easpring Material Technology (70%) and Finnish Minerals Group (30%). This facility will supply cathode active material (CAM) for electric vehicle batteries and other energy storage systems. As a result, Finland continues to solidify its role in Europe's battery supply chain strategy.

The initial production capacity will reach 60,000 t/yr, with scalability for future expansion.

This aligns with Finland’s ambition to become a sustainable battery materials hub in northern Europe.

Finnish government backs project with €100mn investment

The total project cost is €800mn, with Finland contributing €100mn via its state-owned entity Finnish Minerals Group. This support highlights the country’s industrial policy focus on energy transition and raw material self-sufficiency.

Meanwhile, Beijing Easpring brings proven CAM manufacturing expertise to the partnership, ensuring production readiness by 2027. This collaboration is one of several European initiatives aiming to localize critical battery material manufacturing.

The Metalnomist Commentary

The Easpring Finland CAM plant reflects a broader shift toward cross-border industrial cooperation in the battery sector. By merging Chinese know-how with Finnish resources and EU policy support, this project could reshape CAM supply in Europe. It also reflects a growing preference for diversification away from Asia-only supply chains.

Finland detains bulker over cable damage as sanctions scrutiny tightens

Finland detains bulker

Finland detains bulker over cable damage after authorities boarded the vessel in the Gulf of Finland. Police escorted the bulker Fitburg into Kantvik port on 31 December. As a result, Finland detains bulker over cable damage while it expands a wider security probe.

Finnish police arrested two crew members and imposed travel bans on two others. Authorities detained the ship’s steel cargo during checks. Meanwhile, customs said the “structural steel” falls under EU sectoral sanctions.

Cable damage probe and arrests in the Gulf of Finland

The investigation followed damage to a telecommunications cable between Helsinki and Tallinn. Officials moved quickly after the incident surfaced early on 31 December. Therefore, the case now blends maritime safety, infrastructure protection, and criminal inquiry.

This incident follows earlier regional disruptions tied to subsea assets. A Finnish court previously dismissed charges in a separate interconnector case. However, that ruling hinged on jurisdiction because the event occurred in international waters.

Sanctions risk and metals supply chain implications

The cargo detention raises immediate questions for metals traders and insurers. Market participants suggested the ship carried hot-rolled coil under EU sanctions, although details remain unclear. As a result, compliance checks may delay deliveries and raise dispute risk.

The route also signals how sanctions enforcement can spill into logistics execution. Buyers may demand stricter cargo documentation and origin transparency. Meanwhile, shipowners may face higher premiums and tighter charter clauses for sanctioned-risk lanes.

The Metalnomist Commentary

This case shows how subsea infrastructure incidents can trigger rapid trade enforcement actions. However, sanctions compliance now depends on operational visibility, not paperwork alone. The firms that harden tracking and governance will protect margins.

Finland grants Neometals €48.7mn for vanadium plant in Pori, Finland

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.

CNGR to Withdraw from pCAM Plant in Finland

CNGR Advanced Materials

Strategic Exit Reflects Shifting Battery Market Conditions

Chinese battery materials producer CNGR Advanced Materials will exit its planned pCAM plant in Finland, citing tough market conditions. The plant, located in Hamina, was expected to produce 60,000 metric tonnes per year of precursor cathode active materials (pCAM).

CNGR’s withdrawal was driven by slower EV adoption in the EU and regulatory uncertainties, according to CEO Dani Widjaja. The move signals CNGR’s intent to focus on core operations amid a changing global demand environment for battery materials.

As a result, the Finnish Minerals Group — a state-owned special purpose entity — will now hold full ownership of the joint venture.

Second Global Pullback Raises Supply Chain Questions

This is CNGR’s second major overseas exit in 2024, following its earlier withdrawal from a nickel JV with South Korea's Posco. Such retrenchments highlight how macroeconomic and policy shifts can reshape battery material investment strategies.

The decision could also impact Finland’s broader ambitions in the battery supply chain.

Specifically, it raises questions for the Easpring-Finnish Minerals Group CAM joint venture, as pCAM is a critical upstream input.

Meanwhile, Finland remains committed to building out its domestic battery value chain, though investor appetite may now face increased scrutiny.

EU Battery Landscape Faces Investment Headwinds

CNGR’s exit reflects broader investment hesitation in Europe’s EV materials sector, which has been slower to mature than expected. High inflation, policy delays, and competition from US incentives have complicated Europe’s path toward battery supply autonomy.

However, Finland continues to be a key node in Europe’s raw material strategy, offering abundant natural resources and strong political support. Yet securing consistent, long-term partners will be essential to maintaining momentum in battery precursor and cathode development.

The Metalnomist Commentary

CNGR’s Finland retreat is a cautionary tale for Europe’s battery ambitions. Supply chain localization must move faster than global headwinds. Without synchronized policy and demand growth, the continent risks losing strategic partners to more stable or incentivized regions.

Finland lithium refinery ramp-up: SBSW moves Keliber into staged start-up

Sibanye-Stillwater

The Finland lithium refinery ramp-up is moving into its final construction phase at Sibanye-Stillwater’s Keliber project. SBSW expects to finish the build in the first quarter and then start a staged ramp-up. The company will align the Finland lithium refinery ramp-up with mining, concentrator, and refinery readiness.

Capital spending remains heavy, with €783mn required to complete construction. SBSW plans 15,000t per year of battery-grade lithium hydroxide for about 18 years. That output supports European battery supply chains and reduces exposure to imported chemicals.

Keliber’s integrated mine-to-refinery build in Finland

Keliber brings an integrated footprint that links deposits, a concentrator, and a refinery in Finland. The project includes seven spodumene exploration or mining properties, plus processing assets. Central Ostrobothnia provides the spodumene feedstock for the refinery circuit.

A staged start reduces technical risk, but it can stretch timelines if commissioning surprises appear. Therefore, investors will track early recoveries, reagent use, and lithium hydroxide quality. Operators often tune crushing, flotation, and conversion steps before they reach nameplate performance.

EU strategic status and price-linked ramp decisions

EU strategic status adds policy support for the Finland lithium refinery ramp-up. The EU Critical Raw Materials Act classifies Keliber as a strategic project. Meanwhile, strategic labels can speed permitting, financing access, and downstream partnership talks.

Lithium prices will shape how fast SBSW funds refinery ramp-up costs. The company plans to defer some ramp spending when market pricing weakens. As a result, the project can preserve cash while keeping long-term capacity optionality.

The Metalnomist Commentary

Keliber can become a benchmark EU lithium hydroxide asset if it executes the ramp cleanly. However, deferring ramp costs creates a trade-off between balance-sheet discipline and market-share timing. The winners will secure offtakes before the next European battery expansion wave.

EU Russian Uranium Phase-Out Begins with New Nuclear Supply Restrictions

Russian Uranium

European Commission tightens rules on Russian uranium imports and nuclear fuel contracts

Member states shift to U.S., French, and Kazakh suppliers amid nuclear fuel diversification efforts

The EU Russian uranium phase-out is now officially underway as the European Commission enacts new measures targeting the region's dependency on Russian-origin nuclear materials. Beginning next month, the commission will block the Euratom Supply Agency from co-signing any new contracts involving uranium, enriched uranium, or related nuclear products sourced from Russia.

Enriched uranium imports from Russia to become “economically less viable”

While existing contracts—such as Finland’s Loviisa reactor fuel supply deal with Russia’s TVEL—will be honored through 2027 or 2030, the EU Russian uranium phase-out roadmap signals a clear pivot. The commission also plans to make importing enriched uranium from Russia economically unattractive, pushing member states toward non-Russian alternatives and internal supply chain development.

Last year, Russia supplied 14% of the EU’s total uranium, 23% of its uranium conversion services, and nearly 24% of enriched uranium. The move disproportionately affects five member states that operate Russian-designed VVER reactors: Bulgaria, the Czech Republic, Finland, Hungary, and Slovakia. However, several have already started transitioning to Western suppliers.

European utilities partner with Westinghouse, Framatome, and Kazatomprom

To support the phase-out, Westinghouse has signed fuel agreements with Bulgaria, Finland, and the Czech Republic. French nuclear firm Framatome will supply Slovakia, Hungary, and the Czech Republic as well. Additionally, the Czech Republic has formed a new fuel partnership with Kazatomprom, Kazakhstan’s state-owned uranium producer.

These transitions underscore Europe’s growing effort to secure energy independence and reduce geopolitical risk in critical infrastructure sectors. The EU Russian uranium phase-out now stands as a major pillar of the bloc’s broader strategy to diversify its energy sources.

The Metalnomist Commentary

The EU’s decisive action on Russian uranium highlights how nuclear supply chains are now strategic assets. For metal and fuel producers outside of Russia—especially in North America and Central Asia—this opens new commercial and geopolitical opportunities in nuclear materials.

Rio Tinto and Partners to Develop Low-Carbon Aluminium Facility in Finland

Rio Tinto

Pioneering Sustainable Aluminium Production

Rio Tinto, in collaboration with several global partners including Mitsubishi from Japan and Sweden's Vargas, has announced plans to explore the development of a new low-carbon aluminium production facility in Kokkola, Finland. This initiative marks a significant advancement in sustainable manufacturing practices, as it aims to establish the first new primary aluminium production site in continental Europe in over 30 years.

Technological Innovations and Collaborative Efforts

The proposed facility will utilize Rio Tinto’s innovative AP60 aluminium smelting technology, renowned for its high efficiency and low carbon footprint. The project, dubbed the Arctial partnership, also involves Finland’s state-owned Industry Investment company along with other key local and international industry stakeholders.

A comprehensive feasibility study and an environmental impact assessment will be conducted initially to ensure the project's viability and sustainability. This preliminary phase is crucial in setting the stage for what could become a benchmark in environmentally-conscious industrial operations.

Strategic Developments and Environmental Impact

In addition to utilizing cutting-edge technology, the facility plans to source its energy from both existing and new low-carbon power production methods. Rio Tinto is set to be a major offtake partner, reinforcing its commitment to reducing carbon emissions across its operations.

Jerome Pecresse, the Chief Executive of Rio Tinto Aluminium, highlighted the project's potential to bolster Europe's industrial sector while supporting necessary capabilities for the ongoing energy transition. "Combining our AP60 technology with electricity not based on fossil fuels presents an attractive opportunity to provide low-carbon aluminium," he stated, emphasizing the strategic importance of this venture in promoting sustainable industrial growth.

Outokumpu Issues Profit Warning Amid Stainless Steel Market Weakness

Outokumpu

Finland-based stainless steel producer Outokumpu has issued a profit warning, revising its guidance for the fourth quarter due to a combination of challenging market conditions, operational setbacks, and falling raw material prices. The company now anticipates its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 to be significantly below the €86 million ($90 million) recorded in the third quarter.

Outokumpu cited multiple factors contributing to the revision, including:

• Prolonged maintenance at its Tornio plant in Finland, which exceeded initial expectations of a €10 million impact.

• Weakened stainless steel market conditions, reflecting sluggish demand across the European value chain.

• Negative inventory valuation effects, driven by plummeting stainless steel and scrap prices.

The company hinted that Q4 adjusted EBITDA could approach breakeven levels or even turn negative due to these compounded challenges.

European Stainless Steel Market Pressures Intensify

The European stainless steel market is facing significant headwinds, with demand declining across the value chain. Falling raw material prices and broader economic uncertainties have exacerbated the situation. The Supermetalprice assessment for stainless steel 304 cold-rolled 2mm sheet delivered to northwest Europe has dropped nearly 15% since Q2, averaging €2,550/t. Similarly, stainless steel scrap 304 (18-8) solids cif Rotterdam has seen a sharp 21% decline, averaging €1,155/t.

Outokumpu’s stainless steel deliveries in Q4 are expected to decrease by 0-10% compared to Q3, with the company now expecting shipments to hit the lower end of the range. Total stainless steel shipments fell by 2.23% year-on-year to 459,000 tonnes in Q3, reflecting broader market stagnation.

These conditions have forced Outokumpu to reassess its operational strategies, while other producers in Europe are similarly reducing capacities to address supply and demand imbalances.

Looking Ahead

Outokumpu’s profit warning highlights the broader challenges facing the European stainless steel industry. Demand-side struggles, coupled with falling prices for raw materials and finished goods, are reshaping market dynamics. As Outokumpu navigates through these turbulent times, the focus will remain on mitigating operational inefficiencies while anticipating potential recovery in global demand for stainless steel.

Easpring CAM output surges as energy storage demand accelerates

Easpring

Easpring CAM output more than doubled in the first half of 2025. The surge reflects strong downstream demand across EVs and stationary storage. Easpring CAM output reached 73,133t, up from 35,955t a year earlier. Revenue rose 25pc to Yn4.432bn, while net profit increased 8.5pc to Yn311mn. The firm now supplies NCM, LFP and LCO, with LFP adoption boosting volumes.

Capacity expansion underpins growth and Europe strategy

Easpring CAM output is supported by new LFP capacity in Sichuan. The first 40,000 t/yr phase started in 2024, with another 90,000 t/yr due by end-2025. The company is also building a CAM plant in Kotka, Finland, to serve European customers. As a result, market participants expect total output to exceed 150,000t in 2025.

Tier-one partnerships deepen order visibility

Easpring strengthened its position with global battery leaders. Partners include SK On, LGES, Samsung SDI, Murata, BYD, EVE Energy and CALB. In March, Easpring agreed to supply 110,000t of ternary CAM to LGES over 2025-27. Meanwhile, LFP demand from energy storage systems continues to expand order books. Therefore, scale and product breadth support multi-region shipments.

The Metalnomist Commentary

LFP’s momentum in grid and behind-the-meter storage is reshaping CAM mix and margin profiles. Watch how European localization in Finland interacts with IRA-style policies and OEM qualification cycles. If LFP pricing stabilizes, Easpring’s volume leverage could outweigh modest unit margins.

China's Share of LME Nickel Stock Rises to Nearly 30%

China's share of nickel warrants in global London Metal Exchange (LME) warehouses surged to almost 30% at the end of June, according to the LME's latest country of origin stock report. This marks a significant increase from 10% at the end of the previous quarter and 11% at the start of 2024.

Chinese-origin nickel on-warrant stocks totaled 25,152 tons at the end of June, accounting for 27.9% of total on-warrant LME stocks. Overall, total on-warrant LME stocks reached 90,294 tons by the end of June, representing an increase of 28.3% from the end of March and 56.3% since the beginning of the year. Inventories were last reported at 95,982 tons, the highest level since October 2021.

The LME has approved the warranting of 171,600 tons per year of new Chinese nickel capacity over the past year. Major producers Huayou and CNGR have been sending shipments of Class 1 metal to the exchange's Asian warehouses. Additionally, China has utilized excess Class 2 capacity to convert low-grade nickel into LME-deliverable nickel cathode, positioning itself as a significant player in the European market.

Meanwhile, Russian-origin Class 1 nickel, which has traditionally been the largest source of LME warrants, declined from 30% at the end of 2023 to 26.7% at the end of June amid geopolitical tensions. In April, the LME banned all Russian metals, including nickel produced on or after April 13, from its global warehouse system following new sanctions by the UK and US governments. Nickel produced prior to this date, labeled as Type 1 warrants, remains eligible for delivery and currently makes up all 24,180 tons stored. The LME also suspended the delivery of nickel products from the Finland-based Harjavalta refinery, owned by Russia's Norilsk Nickel, affecting the producer's cathode and briquette brands. Finland-origin nickel made up 1,308 tons of LME on-warrant stocks at the end of June.

Australia was the largest source of LME on-warrant nickel stocks in June, with 26,322 tons. However, China is expected to take the lead in the coming months as its Class 1 output accelerates and Australia's loss-making operations increasingly enter care and maintenance.

South African-origin nickel in LME warehouses totaled 7,734 tons at the end of June, while Canadian material amounted to 2,388 tons.

Prospech Boosts Hafnium and Niobium Exploration in Finland Amidst Strong Market

Prospech

Australian junior mining company, Prospech, is significantly expanding its Jokikangas rare earth and hafnium project in Finland.  This strategic move comes as the prices of hafnium and niobium remain elevated, driven by robust demand from key industrial sectors.  Prospech's focus on these critical metals positions them well to capitalize on favorable market conditions.

Expanding the Jokikangas Project

Prospech initially acquired the Jokikangas project in 2023, where they subsequently discovered high-grade deposits of both niobium and hafnium.  The company has now secured an additional 4,852 hectares, bringing the total project area to an impressive 7,062 hectares. This expansion underscores Prospech’s commitment to thoroughly exploring and developing the site’s potential.

Leveraging Historical Data and Resampling Core Samples

The Jokikangas site exhibits iron-hosted, zircon-rich zones containing hafnium, which Prospech has visually identified. While these zones have been defined, the drill core samples remain largely unsampled for hafnium and other valuable elements. Notably, the high-grade zone boasts concentrations exceeding 1.5% niobium, zirconium, and rare earth elements, extending down to a depth of 250 meters. Prospech will utilize existing archived drill hole data from previous exploration activities conducted by companies such as Outokumpu as far back as 1981.  Additionally, they will leverage core resampling work performed by the Finnish geological survey (GTK) in 2020.  By resampling these historically preserved drill cores, Prospech aims to comprehensively assess the project's overall resource potential and refine their understanding of the deposit's characteristics.

Niobium Market Dynamics

The niobium market is currently experiencing a period of strength, primarily fueled by increased demand from the aerospace and defense industries.  Coupled with reduced supply from Brazil, a major niobium producer, this demand has propelled a steady increase in niobium columbite prices over the past two years.  Market analysts predict that the demand from these critical sectors will continue to bolster the niobium market well into 2025. This positive market outlook further reinforces the strategic importance of Prospech’s expanded exploration efforts.

Outokumpu Reports Decline in 2Q Steel Shipments and Revenues Amid European Market Challenges

Finland-based stainless steel producer Outokumpu has reported a significant decline in both steel shipments and revenues for the second quarter of 2024, as the company continues to grapple with a slow recovery in the European market, tight scrap metal supply, and the lingering effects of strike action in Finland earlier this year. Despite these challenges, the company experienced a year-on-year increase in shipments within the Americas sales region, providing some relief to the overall downturn.

During the April-June period, Outokumpu shipped 468,000 tonnes of stainless steel, representing a 6.8% decrease compared to the same period last year. The decline was more pronounced in Europe, where shipments fell by 9.77% year-on-year to 316,000 tonnes. However, the United States saw a nearly equivalent rise in shipments, totaling 161,000 tonnes.

Over the first half of 2024, Outokumpu's shipments declined by 9.5% to 912,000 tonnes, underscoring the challenges faced by the company. The second quarter saw distributor inventory levels in Europe remain low, largely due to limited supply stemming from strike actions at major production facilities. Interestingly, shipments in the January-March period had increased by 4%, a trend attributed to a slight easing in scrap metal sourcing during the second quarter.

Outokumpu's financial performance reflected these operational challenges. The company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the second quarter plunged by nearly 75% year-on-year to €56 million. The financial impact of the Finnish political strike was substantial, with a reported negative effect of approximately €30 million on the adjusted EBITDA, mirroring the impact seen in the first quarter.

For the first half of the year, adjusted EBITDA fell sharply to €94 million, marking a 76.14% decline compared to the same period in 2023.

The company's ferrochrome production also took a hit, decreasing by 34% year-on-year to 79,000 tonnes due to the strike and the temporary closure of one of its three ferrochrome furnaces in response to weak market demand. Nevertheless, deliveries of ferrochrome increased by 16% year-on-year, reaching 104,000 tonnes.

In January, Outokumpu temporarily shut down one of its three ferrochrome furnaces and one of its two sintering plants. The company expects ferrochrome production to operate at 80% of capacity until the autumn, as market fundamentals for ferrochrome showed significant improvement in the second quarter.

Looking ahead to the third quarter, Outokumpu anticipates that stainless steel deliveries will remain stable compared to the second quarter. While Europe's market recovery is expected to continue at a slow pace, the market environment in the Americas is forecasted to remain soft. Additionally, the scrap market is likely to stay tight, according to the company.

Outokumpu Rebounds to Q1 Profit on Lower Costs and Ferrochrome Gains

Outokumpu

European cost savings and strong ferrochrome drive Outokumpu’s recovery

Outokumpu rebounds to Q1 profit after posting a loss in the previous quarter, driven by cost reductions and robust ferrochrome performance. The Finnish stainless steel producer reported a 29% year-on-year increase in adjusted EBITDA, reaching €49 million in Q1 2025, compared to a loss of €3 million in Q4 2024.

Ferrochrome unit leads growth despite U.S. headwinds

Outokumpu’s ferrochrome unit nearly doubled its EBITDA to €43 million, supported by higher prices and strong external demand. European operations also improved, with EBITDA rising to €6 million. However, the Americas segment saw a 54% drop in EBITDA to €11 million, reflecting ongoing regional cost pressures. Stainless steel deliveries rose 6% year-on-year to 470,000 tonnes, although realized prices declined across both regions.

Outlook improves, but geopolitical and cost risks persist

Despite a €15 million impact from a union strike in Finland, the Q1 cost hit was smaller than last year’s €30 million loss. Outokumpu expects stainless steel deliveries to grow by up to 10% in Q2, but a €10 million impact from scheduled ferrochrome maintenance is anticipated. The company also warned that global tariffs and geopolitical instability could affect future pricing and profitability. Still, Q2 adjusted EBITDA is projected to be equal to or higher than Q1.

The Metalnomist Commentary

Outokumpu’s return to profitability reflects its operational agility in Europe and the strategic advantage of in-house ferrochrome supply. However, declining U.S. margins and external risks highlight the need for regional diversification and cost discipline in a volatile trade environment.

CNGR Raises CAM Precursor Output and Sales in 2024

CNGR

CNGR Boosts Output Across Key Battery Materials

China’s CNGR Advanced Material increased its cathode active material (CAM) precursor production and sales in 2024, reflecting robust battery sector demand. Total CAM precursor output rose by 2.4% year-on-year to 291,019 tonnes, including nickel-cobalt-manganese (NCM) precursor, cobalt tetroxide, and iron phosphate.

The company’s operating capacity averaged 63%, with cobalt tetroxide production running at 102% capacity due to strong electronics sector demand. Production reached 192,548t NCM precursor, 26,922t cobalt tetroxide, and 71,549t iron phosphate, confirming balanced growth across its portfolio.

Sales Expansion and Global Strategic Shifts

CNGR’s total CAM precursor sales climbed 11% to 302,060 tonnes in 2024, outpacing production growth due to efficient logistics and stable client demand. The firm operates major production hubs in Hunan, Guizhou, and Guangxi, and launched Morocco’s first ternary precursor lines in January 2024.

However, CNGR will exit its Finland project, citing regulatory uncertainty and poor market conditions in Europe. This strategic pivot emphasizes the firm’s renewed focus on Asia and North Africa as growth zones.

Customer Base and Metal Diversification Efforts

CNGR supplies materials to leading battery producers including CATL, LG Chem, Samsung SDI, and Tesla, as well as CAM firms like XTC, Beijing Easpring, and Ningbo Ronbay. It began cobalt metal deliveries in July 2024 from its new 2,000t/yr facility in Guangxi, marking a downstream integration move.

This expansion into refined cobalt suggests a broader vertical integration strategy aimed at reinforcing CNGR’s presence in the global battery value chain.

The Metalnomist Commentary

CNGR’s 2024 performance shows strong resilience and strategic recalibration. While European uncertainties prompted a project withdrawal, the firm’s pivot toward Morocco and cobalt refining in Guangxi signals regional diversification and resource control. Expect CNGR to deepen its influence in battery metals amid growing EV demand.

Keliber Lithium Project Capex Rises 17% as Sibanye Builds Strategic EU Supply Chain

Keliber

Keliber’s cost increase highlights challenges of non-Chinese battery chain development

Keliber lithium project capex has risen by 17% to €783 million ($882 million), according to South Africa–based Sibanye Stillwater. The Keliber project, located in Finland, is a fully integrated mine-to-hydroxide operation targeting up to 15,000 tonnes per year of battery-grade lithium hydroxide. The revised capital expenditure includes full development, construction, and refinery commissioning.

EU backs project with strategic designation and green financing

The European Commission designated Keliber as a “strategic project” under the Critical Raw Materials Act, alongside Sibanye’s GalliCam initiative. The project secured up to €500 million in green financing, including a €150 million loan from the European Investment Bank. These efforts reflect the EU’s push to localize lithium processing and reduce dependency on China in the battery materials supply chain.

Commissioning on track for 2026 amid broader EU battery ambitions

Sibanye confirmed that construction of the Keliber refinery is nearing completion, with hot commissioning scheduled for Q1 2026. Meanwhile, its GalliCam project—focused on producing precursor cathode active materials—will complete its pre-feasibility study by Q4 2025. The Keliber lithium project capex update highlights rising costs in Western battery investments, driven by stricter ESG, permitting, and labor frameworks compared to China.

The Metalnomist Commentary

The Keliber cost increase underscores the financial intensity of reshoring critical minerals infrastructure in Europe. However, EU-backed strategic designation and financing signal strong institutional support for supply chain sovereignty in battery materials.

China's Putailai Cancels Sweden Battery Anode Project Amid Regulatory Hurdles

Shanghai Putailai

Chinese battery anode material manufacturer Shanghai Putailai has announced the termination of its planned battery anode material project in Sundsvall, Sweden, after failing to secure approval from the Swedish government. The decision, disclosed on December 19, follows extensive regulatory reviews and negotiations regarding investment conditions.

The project, initially designed to have a production capacity of 100,000 tonnes per year (t/yr), was expected to roll out in two phases: 50,000 t/yr by 2025, followed by another 50,000 t/yr by late 2026 or early 2027. Putailai had earmarked a maximum investment of 15.7 billion Swedish kronor ($1.4 billion) for the venture, which was part of its broader strategy to expand outside of China.

Regulatory Hurdles and Project Termination

Putailai’s foreign direct investment (FDI) declaration was submitted to Sweden’s Strategic Products Supervision Bureau in February 2024, with an official review beginning in June 2024. However, on December 3, the Swedish government imposed conditions regarding equity control, management composition, intellectual property rights, and corporate supervision for Putailai’s Swedish subsidiary, Zichen Sweden.

After failing to reach an agreement on these terms, Sweden ultimately rejected Putailai’s investment application, though specific reasons were not disclosed. The company had already invested 14 million yuan ($1.9 million) in a feasibility study, though it noted that this cost would not impact its operations.

Expanding Anode Production in China Amid Western Setbacks

Despite the setback in Sweden, Putailai remains committed to increasing its anode material production capacity. The company reported 68,197 tonnes of anode material sales in H1 2024, marking a 24% year-on-year increase. It currently operates 150,000 t/yr of total capacity and is constructing an additional 100,000 t/yr plant in Qionglai, Sichuan province, set to launch by the end of December.

Several Chinese battery material firms, including Shanshan, have sought expansion into Europe, with Shanshan planning a 100,000 t/yr anode production complex in Finland to cater to overseas demand. However, geopolitical uncertainties and economic challenges have created obstacles for Chinese firms seeking foreign investments and partnerships.

Outokumpu Secures 10-Year Molybdenum Oxide Supply Deal from Greenland’s Malmbjerg Mine

Outokumpu

$1.6 Billion Offtake Agreement to Support EU Stainless Steel Production and Advance Arctic Mining Project

Outokumpu Moves to Secure Strategic Molybdenum Supply from Greenland

Outokumpu has signed a $1.6 billion, 10-year offtake deal to source molybdenum oxide (MoOx) from Greenland Resources' Malmbjerg project. The agreement ensures Finland-based Outokumpu receives 8 million pounds of MoOx annually, covering half of its global requirements. This volume represents 25% of the Malmbjerg mine’s projected output over the same period.

The long-term supply will directly support Outokumpu’s European stainless steel operations. Molybdenum enhances corrosion resistance in stainless alloys, making it essential for infrastructure, energy, and chemical industries.

Financing and Permitting: Malmbjerg Project Enters Key Development Phase

As part of the deal, Outokumpu will assist Greenland Resources in securing funding to move the $820 million mine into construction. While exact financing needs remain undisclosed, Export Development Canada issued a letter of interest for up to $275 million in February.

Greenland Resources still needs to obtain its final exploitation license before starting extraction. It received a draft permit earlier this year, and aims to unlock the mine’s full 20-year lifespan. The project contains 245 million tonnes of molybdenum disulfide ore at an average grade of 0.176%, expected to yield 571 million pounds of contained molybdenum.

Molybdenum Market Volatility Adds Urgency to Strategic Agreements

European prices for molybdenum oxide have dropped 14% since peaking in June 2024, with recent levels assessed at $20.65–$20.85/lb, according to SUPERMETALPRICE. This price volatility makes secure long-term sourcing vital for downstream users like Outokumpu.

The Malmbjerg project is one of the most advanced Arctic mining developments, and this deal underscores the EU’s growing interest in diversifying critical raw material supplies away from dominant producers like China and Chile.

Magnesium Added to Greenland Resources License for Malmberg Project

Greenland Resources

Greenland Resources has confirmed that magnesium will be included in its draft exploration license for the Malmberg project in east-central Greenland. The updated scope expands the project’s strategic value beyond molybdenum, as the magnesium Greenland Resources license now aligns with critical mineral priorities in both the US and EU, where domestic magnesium production is absent.

The Greenland government verified magnesium’s presence in the Malmberg deposit, prompting regulators to recommend formal inclusion. The magnesium will be recovered as a byproduct of molybdenum extraction and may also be recovered from saline tailings water, according to Greenland Resources. This multi-source extraction strategy enhances the site’s economic and critical materials relevance.

Dual Critical Mineral Strategy Enhances Malmberg Project Value

The expanded magnesium Greenland Resources license adds new momentum to the Malmberg project, which is already positioned as a high-grade molybdenum source. In February 2025, Greenland Resources signed a 10-year, $1.6 billion offtake deal with Outokumpu, a Finland-based stainless steel producer, for molybdenum oxide. The addition of magnesium strengthens the project’s appeal to industrial buyers facing supply shortfalls.

Magnesium is widely used in lightweight alloys, defense applications, and battery systems, making it a key focus for strategic sourcing. The company’s plan to extract magnesium from both ore and tailings brine also reflects a growing industry trend toward zero-waste and water-integrated metallurgy.

US and EU Magnesium Dependence Highlights Strategic Importance

Neither the United States nor the European Union currently hosts domestic magnesium production, despite listing the metal as a critical raw material. The magnesium Greenland Resources license positions Greenland as a potential supplier to Western markets seeking non-Chinese sources of magnesium.

As supply chain resilience becomes central to industrial policy, Greenland’s geostrategic location and mineral endowment could play a more prominent role in EU and US critical mineral strategies. With permitting underway and magnesium officially recognized, Greenland Resources gains leverage in future financing, offtake, and export agreements.

The Metalnomist Commentary

Adding magnesium to the Greenland Resources license broadens the Malmberg project’s relevance in critical mineral geopolitics. In a supply environment dominated by China, even byproduct recovery from molybdenum mining becomes a strategic lever for Western industrial resilience.