Collaboration creates sustainable value chain for battery chemicals, reducing reliance on imported raw materials
Fortum, a leading energy company, and Terrafame, a battery chemical producer, have joined forces in an experimental project aimed at advancing the recycling and utilization of metals extracted from electric vehicle (EV) batteries. The partnership between the two Finnish companies seeks to establish a more sustainable value chain to meet the growing demands of Europe’s battery manufacturing industry.
Under the agreement, Fortum will supply nickel and cobalt, obtained from the black mass of used EV batteries at its Harjavalta recycling plant, to Terrafame. Terrafame will then employ these recycled raw materials in the production of battery chemicals for new EV batteries. By integrating recycling practices into the life cycle of batteries, the collaboration aims to achieve a closed loop of recoverable raw materials.
The partnership between Fortum and Terrafame serves as a testament to the potential and synergy within Finland’s battery cluster. Tero Holländer, Head of Business Line Batteries at Fortum Battery Recycling, expressed enthusiasm, stating, “We are very pleased to be part of producing even more sustainable battery chemicals whilst contributing to the sustainability of the Finnish battery cluster. In addition, the collaboration with Terrafame is a step towards a more self-sufficient European battery manufacturing industry with less need to use imported raw materials.”
Joni Lukkaroinen, CEO of Terrafame, highlighted the significance of the collaboration as a stepping stone towards recycling-based battery chemical production. Lukkaroinen stated, “The battery chemicals we produce already have the smallest carbon footprint in the market. With recycling, we can further develop the sustainability of our products while expanding our raw material base.”
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As the demand for battery chemicals continues to surge, Europe is actively seeking innovative solutions to ensure a reliable supply of raw materials for EV batteries. While complete substitution of primary raw materials with recycled materials remains a long-term goal, upcoming sustainable battery regulations in the European Union will necessitate a gradual increase in the use of recycled materials in battery manufacturing. In 2026, the first minimum requirements for the recovery of battery materials, including cobalt, nickel, and lithium, will come into effect, compelling battery, electronics, and car manufacturers to prepare for the new legislation.
The experimental operations of Fortum and Terrafame are set to commence in June and are anticipated to span multiple years. The collaboration aims to establish a sustainable recycling value chain to meet future demands. By leveraging the expertise of both companies, this innovative project promises to pave the way for a more environmentally friendly and self-sufficient European battery manufacturing industry.
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