Easpring Finland receives environmental permit – Kotka-Hamina region strengthens its position as a pioneer in the battery cluster

29.10.2024 | The Regional State Administrative Agency for Southern Finland has granted an environmental permit for the battery materials plant planned by Easpring Finland New Materials Oy for Keltakallio in Kotka.
The decision will allow the investment project, worth around EUR 770 million, to proceed and strengthen the Kotka-Hamina region’s position as a forerunner in sustainable development and clean energy technology.

The plant will produce cathode-active material (CAM) used in the manufacture of lithium-ion batteries. Demand for batteries is growing rapidly with the electrification of transport and the need for renewable energy storage. The Kotka plant will have a production capacity of 60 000 tonnes of nickel-manganese-cobalt-based cathode material per year, which will meet the needs of around 500 000-800 000 electric cars. This project will make Kotka the first NMC-based cathode-active material production site in Finland and an important hub for battery production in Europe.

The employment impact of the Kotka CAM plant will be around 270 man-years. According to an estimate by Ramboll, commissioned by Easpring Finland New Materials Oy, the plant will generate around €180 million in new tax revenues per year.

“The Kotka-Hamina region is an ideal environment for sustainable industry. This positive authorisation decision will strengthen the attractiveness of the region and create a basis for new investments that will support Europe’s efforts to become more self-sufficient in battery materials and electrification. The City of Kotka has been preparing the Keltakallio site for Easpring Finland and this is a major step towards the realisation of the final investment. Kotka needs new industry in addition to existing businesses, and with it jobs and vitality,” said Esa Sirviö, Mayor of Kotka, summing up the morning’s news.

“This step further strengthens the role of the Kotka-Hamina region in achieving the objectives of Finland’s battery strategy, and shows that the region is capable of bringing added value to Finland. At the same time, it gives us confidence that as part of the restructuring process we will be able to bring new clean transition industries to replace the closed industries and thereby strengthen the vitality of the region. Thank you to everyone who has contributed to this and to the authorities for the speedy processing,” said David Lindström, CEO of Cursor Oy, on the news of the permit.

The Regional Administrative Authority handled the environmental permit application under the priority procedure for the green shift. The plant is scheduled to start operations in 2026.