Finnish Minerals Group and Beijing Easpring Material Technology have initiated the construction of a new cathode active material (CAM) plant in Kotka, Finland. This facility is designed to produce CAM, a crucial component for lithium-ion batteries, with an initial annual capacity of 60,000 tonnes. The project also includes provisions for future expansion to meet growing demand.
The investment, valued at approximately €800 million, is being developed by Easpring Finland New Materials Oy, established in 2024. Finnish Minerals Group holds a 30% stake in the venture, while Beijing Easpring Material Technology owns the remaining 70%. The funding structure comprises contributions from both companies, external loans, and support from the clean transition aid scheme for industrial investments. Additionally, the Finnish government is contributing by capitalizing Finnish Minerals Group with €100 million to facilitate the project.
Matti Hietanen, CEO of Finnish Minerals Group, emphasized the strategic partnership with Beijing Easpring Material Technology, highlighting the latter’s leadership in CAM development and production. He noted that the Kotka plant represents a significant advancement for Finland’s battery industry and serves as a key project within the European battery value chain.
“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.
Environmental permits for the plant were secured in December 2024 through the green transition priority procedure. The facility will occupy approximately 80 hectares in the Keltakallio industrial area of Kotka, with a lease for the initial 27.8 hectares signed in January 2025.
“The Kotka CAM plant will be a state-of-the-art facility with a production process based on a high level of automation and proven technology. The basic design of the plant also provides for a situation where the market demands and technologies continue to develop and ensures that we can respond to these developments,” says Timo Strengell, SVP of Battery Value Chain at Finnish Minerals Group.
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.
Source: Minerals Group
