Luxembourg-based Freyr Battery and Finnish Minerals Group said on Thursday they had signed an agreement for a possible joint venture to produce cathode material based on lithium, iron and phosphate in Finland.
Cathode material is needed in batteries used for large-scale energy storage.
“The potential joint plant aims to be a spearhead project for the production of LFP cathode material in Europe,” the companies said.
Freyr, at present, is building its first battery cell factory in Norway.
Finnish Minerals Group, which has a state mandate to develop the mining and battery industry in Finland, said it had completed a preliminary study of its Sokli deposit in northern Finland.
“The results of the scoping study show the Sokli deposit in Savukoski could produce not only phosphate and iron, but also various rare earth elements, which are essential in the transition to using renewable energy,” Finnish Minerals Group added.
Sokli could fulfil more than 20% of Europe’s annual demand for phosphate, in addition to producing other minerals, the company said.
“The mine would strengthen the autonomy of European industry and reduce our dependence on exported minerals,” Finnish Minerals Group chief executive Matti Hietanen said.