In a significant move towards strategic autonomy, the European Union (EU) and Sibanye-Stillwater have finalized a €150 million deal aimed at improving the region's access to and resilience in battery materials, particularly lithium. This agreement is part of the InvestEU program, which seeks to mobilize over €372 billion in additional investments by 2027.

Credit package to strengthen lithium production

The European Investment Bank (EIB) is spearheading a €150 million credit package, out of a total of €500 million allocated to Sibanye-Stillwater’s Keliber project. This financing is designed to support the development of mining and processing facilities in the Kaustinen area of Finland, which holds one of Europe’s largest lithium reserves. Lithium is a critical raw material for transport electrification, and this investment aims to meet the growing demand in the European market.

EIB's first support for critical raw materials mining in the EU

The EIB credit package includes a €150 million direct loan, with the European Commission providing a guarantee under the InvestEU program. This loan marks the EIB's first support for mining critical raw materials within the EU, highlighting the importance of this initiative for the institution. EIB Vice-President Thomas Östros emphasized that this funding is a key step towards enhancing Europe’s access to its own battery materials and bolstering the bloc’s climate and energy resilience.

Keliber project: pioneering battery-grade lithium production in the EU

Sibanye-Stillwater’s Keliber project aims to become the EU’s first integrated producer of battery-grade lithium hydroxide. The project, which has already commenced construction, will utilize an innovative manufacturing process on a commercial scale for the first time. Lithium hydroxide production is expected to begin in 2025, with an annual production target of up to 15,000 tons.

Mika Seitovirta, Chief Regional Officer of Sibanye-Stillwater Europe, remarked that this €500 million green financing package represents a significant advancement in the company’s battery minerals strategy in Europe. The package provides crucial funding to complete the development of the Keliber project, aiming to enhance Europe’s self-sufficiency in this critical raw material for the green transition.

Background on InvestEU and EIB

The InvestEU program consolidates various EU financial instruments to support investment projects, making the funding process simpler and more flexible. The EIB, as the EU’s long-term lending institution, finances investments that contribute to EU policy objectives, including climate neutrality. In 2023, the EIB signed €88 billion in new financing for over 900 projects, which is expected to mobilize around €320 billion in investments.