Terrafame

Terrafame operates as a multi-metal company, specializing in the production of battery chemicals for the electric vehicle market. The company was established in 2015 after acquiring the Sotkamo mine and metals recovery plant, which had previously been operated by Talvivaara Kaivososakeyhtiö Oyj before its bankruptcy. This acquisition marked a significant turnaround, supported by new owner capital. The company's primary owner is the Finnish Minerals Group, a special-assignment company of the state of Finland.

The core of Terrafame's business model is its highly integrated production process, where all operations, from its own open-pit mine to a state-of-the-art battery chemicals plant, are located on a single industrial site in Sotkamo, Finland. This provides a transparent and traceable European supply chain for its clients, primarily international car manufacturers. Revenue is generated through the sale of nickel and cobalt sulphates, which are key components in the manufacturing of lithium-ion batteries. Additionally, the company produces zinc and copper sulphides as well as ammonium sulphate as a by-product. In 2023, Terrafame's net sales were reported at €560.9 million.

A central feature of Terrafame's operations is its use of a proprietary bioleaching method to extract metals from ore. This technique, which utilizes naturally occurring microbes, is significantly more energy-efficient, consuming about 90% less energy than conventional methods. A key benefit of this process is a substantially lower environmental impact; the carbon footprint of Terrafame's nickel sulphate is reported to be over 60% smaller than the industry average. The battery chemicals plant, one of the largest in the world, began its ramp-up in June 2021 and has the capacity to produce enough nickel sulphate for approximately one million electric cars annually. The company has secured major supply agreements with automotive giants like Renault Group and Stellantis.

Keywords: battery chemicals, nickel sulphate, cobalt sulphate, electric vehicles, sustainable mining, bioleaching, metals extraction, European battery value chain, low-carbon footprint, lithium-ion batteries, integrated production, responsible sourcing, zinc sulphide, copper sulphide, circular economy, Finnish Minerals Group, Sotkamo mine, raw materials traceability, automotive supply chain, energy-efficient production