The Briefing
- Finnish company Keliber begins lithium extraction in Kaustinen.
- The €800 million project creates approximately 350 local jobs.
- It aims to reduce Europe’s heavy reliance on imported battery minerals.
After years on the drawing board, Finnish miner Keliber has started extracting lithium in western Finland, marking Europe’s first full-scale operation capable of turning local ore into battery-grade material.
The EUR 800 million venture, owned 80 percent by South Africa’s Sibanye-Stillwater and 20 percent by state-backed Finnish Minerals Group, opened its initial open-pit mine this week. Keliber plans six additional pits in nearby villages, eventually employing about 350 people.
Chief executive Hannu Hautala said producing lithium inside the EU shortens supply routes that currently stretch from Australia and South America to Asian refineries.
“Being first in Europe is a clear competitive edge,” he told national broadcaster Yle.
Global lithium prices have swung sharply in the past two years.
Portugal owns larger reserves but lacks refining plants, while Serbia froze a major project last November amid environmental protests. That leaves Keliber temporarily alone in Europe’s quest to cut dependence on Chinese-processed lithium.
The European Union lists lithium as a “critical raw material” and aims for at least 10 percent of the bloc’s annual demand to be mined at home by 2030.
Global lithium prices have swung sharply in the past two years, reflecting surging electric-vehicle sales and concerns over supply security.
Keliber’s concentrate will feed a forthcoming refinery in nearby Kokkola, expected online in 2026. Once fully ramped up, the site could power roughly 500 000 electric-car batteries each year, according to company estimates.
A Long Road to Production
The path to this week’s opening was difficult. Keliber was established 25 years ago but faced repeated funding shortages that stalled progress. The situation changed in November 2022 when South African mining giant Sibanye-Stillwater bought an 80 percent stake in the company. The remaining 20 percent is held by the state-owned Finnish Minerals Group.
While the mine is now operational, full-scale refining will take more time. Recent reports indicate a “staged” start-up strategy, prioritizing raw mining first while the refinery infrastructure is completed.
