Sibanye-Stillwater has finalised a €500 million (R10bn) green funding package to advance its Keliber lithium project in Finland, marking a significant shift towards green energy and battery metals.

This funding package includes a €150 million (R3bn) tranche from the European Investment Bank (EIB), a €250 million (R5bn) Export Credit Agency-guaranteed tranche and a €100 million (R2bn) syndicated commercial bank tranche.

The Keliber project, located in Finland’s Kaustinen, Kronoby and Kokkola regions, is aiming to become the first fully integrated producer of battery-grade lithium hydroxide, vital for electric vehicle batteries, in the European Union (EU).

The funding package is designed to cover the total capital expenditure of approximately €656 million (adjusted for inflation) for the project’s development including mining, processing and refining facilities. It aligns with the EU’s InvestEU programme and marks the EIB’s first direct support of critical raw materials mining within the EU.

Production at the Keliber project is scheduled to begin in 2025, initially using third-party ore, and full-scale operations from its own resources are expected by 2026. The project is expected to produce up to 15 000 tonnes per annum of battery-grade lithium hydroxide.

“The funding package provides cost-effective, long-term capital for the Keliber project, reinforcing its viability and ESG credentials,” said Sibanye-Stillwater CEO Neal Froneman.