Keliber secures €500 million green loan for lithium production in Finland

Finnish lithium mining company Keliber has secured a €500 million green loan. This funding package complements previous financing aimed at constructing the project and initiating production. Of this loan, €150 million comes from the European Investment Bank, while the remaining €350 million is financed by seven commercial banks. The Finnish state financing company Finnvera guarantees €250 million of the commercial banks’ total. Bank of America and investment bank Natixis are the primary arrangers of the loan.

“The financing for the project has always been secured. The final execution, choice, and format have now been determined,” stated Riku Sauso, Chief Financial Officer.

Keliber is currently building a lithium chemical plant in Kokkola, while in Kaustinen, construction of a concentration plant is underway alongside preparations to open two mines in the early phase. The total cost of these projects amounts to €667 million, with additional millions required for startup operations, bringing the total estimated cost to €750 million.

Keliber’s main owner is South African company Sibanye-Stillwater, which has raised €250 million from its owners.

Green loans typically come with lower interest rates compared to standard market loans. Although Sibanye-Stillwater could have funded the remaining amount through other means, the green loan offers a more competitive rate, as noted by Keliber’s CEO, Hannu Hautala. “It is slightly cheaper in percentage terms, but for a €500 million loan, the difference can add up,” he explained.

The company views the green loan as an important benefit for their image, positioning it among the first European solutions in green financing. Keliber aims to be the first European producer of battery-grade lithium hydroxide from its own ore, with lithium production in Kokkola set to begin in summer 2025, initially relying on imported concentrate, before the Kaustinen plant starts operations in spring 2026.