Europe is taking another important step towards reducing its dependence on China for lithium supplies, as an ambitious mining and processing project moves forward in Finland.
Lithium, often described as the “white gold” of the energy transition, is a critical raw material for the production of batteries used in electric vehicles, energy-storage systems and a wide range of electronic devices.
In western Finland, the development of the Syväjärvi mine is paving the way for the production of lithium hydroxide on European soil. The project is designed to cover the entire production chain, from mining, crushing and processing the ore to converting it into lithium hydroxide at a dedicated processing facility.
Production is expected to begin in the coming months, with the facility scheduled to reach full production capacity in 2028. The deposits are estimated to support annual production of approximately 15,000 tonnes of lithium for at least 18 years — equivalent to around 10% of Europe’s current demand.
The project covers an area of approximately 500 square kilometres and is expected to employ around 350 people once fully operational, providing a significant boost to the local economy.
The operation is run by a Finnish mining company that is 80% owned by a South African mining group and 20% by Finland’s state-owned minerals company. Its shareholders have recently agreed to provide additional funding to support the further development of the project, highlighting its growing strategic importance.
The development is particularly significant for the European Union, which remains heavily dependent on imports to meet its needs for critical raw materials. Developing domestic lithium resources is therefore seen as an important step towards building a more secure and resilient European supply chain for batteries and electric mobility.
Finland is not alone in pursuing lithium projects. Across Europe, mining, processing and refining projects are also being developed in countries including Serbia, Portugal, Germany and France, with investments reaching billions of euros.
These initiatives form part of Europe’s broader strategy to strengthen its self-sufficiency in critical raw materials and reduce the risks associated with excessive reliance on foreign suppliers.
As the energy transition and electric mobility continue to drive demand for batteries, lithium is expected to become increasingly important economically and geopolitically. The development of Europe’s own lithium resources could therefore play a crucial role in building a stronger, more resilient and more independent European battery industry.