Supplementary budget includes a large investment in the battery industry: Building a responsible battery industry will create jobs and tax revenue
It is the Government’s objective to increase the added value of Finnish minerals, thereby helping to create a new sector of high-tech battery industry in Finland, and to profile Finland as a global frontrunner in sustainable electric transport. The planned transition into a circular economy will reduce the use of natural resources.
“We have agreed to invest EUR 450 million through the supplementary budget in additional funding to Finnish Minerals Group to drive the battery industry. This is an important decision; one that will build confidence in our ability to create a new industrial sector, and in Finland as an investment environment. It also represents a determined effort to transition into a carbon-neutral economy,” says Minister of Employment Tuula Haatainen.
The growing popularity of electric cars, among other things, creates significant global business opportunities for the battery industry.
High added value will create jobs and generate tax and export revenue
With the investments, the Government aims to create a responsible value chain in the Finnish battery industry. Its competitive advantage would stem from the ability to produce environmentally friendly, ethical and recyclable materials.
“Finland differs from other European countries in that we have an abundant supply of raw materials for lithium-ion batteries, competitive renewable energy, and highly responsible players in the sector. All this makes us well equipped to raise the added value and generate new high-tech expertise in Finland. The additional funding we have agreed on represents a significant contribution from the Government, and enables joint investments for launching battery material plants in Finland,” said Mika Niemelä, Director of Finance at the Ministry of Economic Affairs and Employment, commenting on the decision.
Of the proposed additional funding of EUR 450 million, an authorisation of EUR 300 million will be allocated to attracting investments in the Finnish battery industry. The objective here is that the Finnish Minerals Group would attract precursor and cathode active materials production to Finland. These are intermediate products needed in the production of lithium-ion batteries for electric cars. Private investors would also participate in the investments.
If the projects were implemented in full, the indirect annual employment effect of setting up two production plants would be approximately 4,500 person-years. This would generate annual tax revenue of more than EUR 200 million.
Timo Nevaranta, Special Adviser to the Minister of Employment, tel. +358 50 340 9483
Mika Niemelä, Director of Finance, Ministry of Economic Affairs and Employment, tel. +358 29 506 2135