Finland ranks top 4 in global lithium-ion battery supply chain
The reasons for Finland’s success can be explained by its increasing battery metals manufacturing, relatively clean grid as well as excellent infrastructure. This has led to Finland outperforming both Sweden and Germany, which have low domestic raw materials. However, they have higher and increasing battery production capabilities. The success of Finland is also partly explained by other countries decreased performance over the years, mostly due to the pandemic. Hence, Finland stays ahead of its competition by being 1st in industry, innovation, and infrastructure category and 2nd in environmental, social and governance category (EGS). These both categories are important to hold onto, and the effect of high-level education and skillful industrial sector is noticeable. Through BATCircle2.0, these rankings are expected to keep flourishing.
Top 4 ranking cannot be stated as a coincidence since Finland has strengthened its already strong battery metal industry by launching National Battery Strategy 2025 in June 2021 . Thus, Finland continues improving its battery manufacturing by employing government funding to “improve the competitiveness of Finland's battery industry, especially in battery materials, battery manufacturing, reuse and recycling” . BATCircle2.0 is also funded by Business Finland as a flagship project in their Smart Mobility and Batteries from Finland program. Besides research and innovation/development investments on battery manufacturing, companies are attracted by Finland’s ready infrastructure for battery manufacturing.
Finland is behind the large players – China, US, and Canada – which have higher capabilities in raw materials, battery manufacturing, and downstream demand (country’s own demand for batteries). Therefore, Finland continues to increase its raw material capabilities, with Keliber planning to start mining and concentrating lithium ore in 2024, and Fortum expecting to start operating its lithium-ion battery recycling plant in 2023 . BNEF had noted Finland’s potential already in 2021, stating “Nordic countries are increasingly important to Europe’s efforts, as their low-carbon power supplies make them attractive to environmentally conscious companies. Finland will soon be home to one of the world’s largest refineries for nickel and cobalt sulfate, both key ingredients for use in EV batteries. Battery material producers Umicore and BASF have also both invested in the country” . In addition, Finland was recognized as one of the resource-rich countries which has managed to increase its ranking alongside Australia.
BNEF is a private strategic research provider which covers global commodity markets and the disruptive technologies driving the transition to a low-carbon economy . The global lithium-ion battery supply chain rankings were first published during their Bali summit in Nov, 2022 .
Sources (Accessed 17.11.2022):