An industry group in Finland plans to invest over €6 billion in the country's battery business in the coming years to expand production of components key to Europe's expected shift away from fossil fuels.

Industry Group To Invest Over EUR 6
Industry Group To Invest Over EUR 6 Billion In Finnish Battery Business Pixabay

The Finnish Battery Association, which comprises of nine companies, said in a statement that it expects to create thousands of new jobs as the industry expands. By 2027, the expected annual turnover of battery-related companies in Finland is set to reach €9 billion.

Finland is experiencing a rapid expansion of battery component manufacturing due to its proximity to key raw material suppliers. According to the association, many large-scale projects are now underway across the country.

A German chemical giant and a battery component supplier, is building its first battery materials plant in Harjavalta, Finland, which the company describes as part of its "multi-stage investment plan that will contribute to the European electric vehicle value chain and strengthen BASF's leading position as a global manufacturer of battery materials for electric vehicles."

A Finnish utility is also building a new battery material recycling plant in Harjavalta, which is on track for completion in early 2023. Once completed, the plant is expected to boost Europe's recycling capacity for battery materials.

Another Finnish factory with expansion plans is Norilsk Nickel Harjavalta, a supplier of nickel and cobalt ingredients for battery components, which plans to increase production from 60,000 tonnes a year to 100,000 tonnes a year by 2026.

The association added that the current national battery strategy and the need to power homes will spur further investments. Finland now supplies some of the most important minerals for the transition industry and has become a hub of world-class carbon neutrality expertise and solutions. In four years, the industry association says, the battery business in Finland will employ up to 6,000 people directly and 20,000 people indirectly.