Kotka, Finland – March 20, 2025 – Finland is poised to become a significant player in the global battery materials supply chain with the construction of a new €800 million factory producing cathode active material (CAM) in Kotka. The project, spearheaded by Easpring Finland New Materials Oy, a joint venture between Finnish Minerals Group and Beijing Easpring Material Technology, represents a major investment in Finland’s battery value chain and aims to reduce Europe’s reliance on Asian CAM production.
The new facility, located in the Keltekallio industrial area, will have an initial production capacity of 60,000 tonnes of CAM per year, directly employing approximately 270 people. The project includes plans for future expansion, solidifying Finland’s position as a key hub for battery material production. Construction is slated to begin in the spring of 2025, with commercial production targeted for 2027.
A Joint Venture for a Strategic Investment
Easpring Finland New Materials Oy, established in 2024, is the vehicle for this ambitious investment. The company is structured as a 30/70 joint venture, with Finnish Minerals Group holding 30% and Beijing Easpring Material Technology owning the majority 70%. This partnership leverages Beijing Easpring’s expertise in CAM development and production, combined with Finnish Minerals Group’s strategic focus on securing critical raw materials for the battery industry.
The project’s funding will be sourced from a combination of owner equity, external loans, and subsidies. Notably, the Finnish state will invest an additional €100 million in Finnish Minerals Group to support the project, demonstrating the government’s commitment to bolstering the nation’s battery ecosystem.
Fast-Tracked Approval and Strategic Location
The project has benefited from a streamlined approval process, with Finnish permit authorities processing the environmental permit under the “green transition priority procedure,” which culminated in finalization in December 2024. This expedited process underscores the strategic importance of the project for Finland’s energy transition goals.
The chosen location in the Keltekallio industrial area in Kotka provides excellent infrastructure and logistical advantages. Approximately 80 hectares have been reserved for the project, with a lease agreement signed in January 2025 for the 27.8 hectares required for the initial phase.
Leveraging Expertise and Addressing Global Demand
“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,” states Matti Hietanen, CEO of Finnish Minerals Group. “With the Kotka CAM plant, we are creating an entirely new kind of industry in Finland related to the production of lithium-ion batteries.”
The demand for CAM is exceptionally high globally, driven by the rapid growth of the electric vehicle market and the increasing need for energy storage solutions. Currently, China dominates CAM production capacities, creating a strategic vulnerability for European battery manufacturers. The Kotka plant aims to alleviate this dependence and strengthen Europe’s battery value chain.
The recent bankruptcy filing by Northvolt in Sweden has further highlighted the fragility of the European battery supply chain and underscored the urgency of establishing domestic CAM production capabilities. The Kotka plant is seen as a crucial step in addressing this challenge.
A Spearhead Project for Europe’s Battery Future
“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,” Hietanen adds. The project is expected to create numerous direct and indirect jobs in the Kotka region and contribute significantly to Finland’s economic growth.
The choice of Kotka as the location for the plant is also strategic, leveraging the region’s existing industrial infrastructure and skilled workforce. The project is expected to attract further investment in the battery materials sector and contribute to the development of a thriving battery ecosystem in Finland.
Looking Ahead: Expansion and Innovation
The initial production capacity of 60,000 tonnes per year represents a significant investment, but the plans include the possibility of expanding production in the future to meet the growing demand for CAM. This expansion will further solidify Finland’s position as a leading producer of battery materials and contribute to the development of a more resilient and sustainable battery supply chain in Europe.
The project also highlights the importance of international collaboration in addressing the challenges of the energy transition. The partnership between Finnish Minerals Group and Beijing Easpring Material Technology demonstrates the potential for combining expertise and resources to achieve common goals.
The Kotka CAM plant represents a pivotal moment for Finland and Europe, marking a significant step towards a more secure and sustainable battery future. The project is expected to create numerous opportunities for innovation, economic growth, and job creation, contributing to a brighter and more resilient future for the region.
