In the competitiveness comparison of battery value chains, Finland is ranked in the TOP 5 globally. Our country’s competitive advantages are highlighted on the Power Coast in the Kotka-Hamina region. We aim to become an international industrial hub for the battery industry by the year 2027. Currently, there are three significant projects underway in the area.
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The electrifying world requires batteries at an accelerating pace. Globally, the demand for batteries is predicted to grow by approximately 27% annually until 2030, equivalent to batteries for over 37 million electric vehicles. The market for battery cells is forecasted to reach 400 billion euros by 2030.
In the global ranking of battery value chains, Finland is among the top five in terms of competitiveness, and ranking second among European countries after Germany (BloombergNEF 2/2024). Finland’s strongest competitive advantages currently lie in critical materials, sustainability, infrastructure, and research and development.
The battery industry in Finland is developing rapidly to meet the growing demand for lithium batteries. Finland’s competitive advantages are highlighted in the Kotka-Hamina region, known as the Power Coast area. Here, there is a strong industrial heritage, expertise, ready infrastructure, and excellent logistical connections.
Additionally, local educational institutions at all levels have the ability to train new workforce for the industry. A close-knit network of education and R&D organizations is emerging around the battery cluster, focusing on education and technology development. Especially LUT, Xamk, and Ekami work closely with regional stakeholders in the field.
The combined value of the investments is billions of euros. The significance for the economic area is extremely large. The direct employment impact during the construction phase is around 180 person-years, and the direct employment impact during production is about 3600 person-years. The employment multiplier effects are approximately 30,000 during the construction phase and around 13,400 during the production phase.
Hamina
In Hamina, the project established CNGR Finland Oy, a joint venture between CNGR and Finnish Minerals Group, in June 2020 for the purpose of the project. Environmental and operational permits were granted in February 2024. The industrial plot size is 45 hectares.
The production capacity is approximately 60,000 tons per year, which is equivalent to the needs of around 900,000 electric vehicles. The direct employment impact is about 150 people plus multiplier effects in other sectors.
In addition to the precursor material plant, a battery material recycling and pre-treatment facility will be built.
Kotka, Keltakallio
The project will be driven by Easpring Finland New Materials Oy, established in 2024, of which Beijing Easpring Material Technology Co., Ltd, a publicly listed company, holds 70 per cent and Finnish Malmijalostus 30 per cent. An industrial estate of 135 hectares has been earmarked for the project.
In the first phase of production, the capacity will be 60,000 tons per year, which is equivalent to the needs of around 750,000 electric vehicles.
Kotka, Keltakallio
Environmental impact assessment has been initiated at the Southeast Finland Centre for Economic Development, Transport and the Environment (ELY Centre). Also, preparation of the industrial plot has begun.
The investment is valued at approximately 4.8 billion euros, and the estimated employment impact is around 20,100 person-years. The planned production capacity is about 60 GWh.
The city of Kotka is preparing the Keltakallio industrial area and infrastructure for the establishment of competitive and sustainable battery industry.
Keltakallio is set to host a CAM (Cathode Active Material) factory for manufacturing cathode active material, and there are also plans for a battery cell factory to be located there.
Cursor’s Invest In team is responsible for coordinating Power Coast together with representatives from the cities of Kotka and Hamina.
Read the blogs of the Power Coast team (in Finnish, translations to come)
Finnish Minerals Group maintains the contractor registry for the projects in Kotka and Hamina.
