© Terrafame - for illustrative purposes only General | November 10, 2017
Terrafame plans nickel and cobalt chemicals production
Multi-metal company Terrafame Ltd. is seeing the fast growing demand for battery applications used in electric vehicles – therefore the company is planning to invest in nickel and cobalt chemicals production for use in battery applications.
Today, less than 2% of new cars sold globally are electric or hybrid vehicles, but their market share is increasing rapidly. By 2030, about 25% of new cars worldwide are estimated to be electric or hybrid vehicles. In addition, the share of nickel in battery applications is growing substantially. This would correspond to 400’000 tonnes of additional nickel demand for battery applications annually as of 2030. “The availability of nickel and cobalt is critical for the electric vehicles market to continue developing. As a producer of these metals, Terrafame is aiming to take a leading role in supplying battery manufacturers with high-quality chemicals to be used in this end-use segment,”Joni Lukkaroinen, CEO of Terrafame Ltd., says in a press release. After completing a feasibility study on battery chemicals production, The Finnish company is proceeding to detailed planning and aiming at making the investment decision during the first half of 2018 and starting up the new plant in 2020. The new production plant under consideration would have a capacity of about 150’000 tonnes of nickel sulphate and approximately 5’000 tonnes of cobalt sulphate per year. This would make Terrafame one of the largest nickel sulphate producers globally. To support the investment plan, the company has already concluded an agreement with Galena Asset Management S.A. and Trafigura Group Ltd. and as well as Sampo plc on a private financing package totalling USD 200 million. Today, Terrafame is producing nickel, cobalt and zinc at its mine and metals production plant in Sotkamo, Finland and is in the process of commercialising copper production.