Environmental and Operational Permits Granted for Hamina’s Battery Material Factory

In a significant development on Monday morning, Hamina’s battery material factory, located in the Southern Finland region, was granted two crucial permits by Avi, the regional administrative agency. These permits include an environmental permit and a permit to commence operations. According to Avi’s announcement, the factory operations have been deemed compliant with the Environmental Protection Act, the Waste Act and the Nature Conservation Act.

Scheduled Production and Company Details

As indicated in the announcement by CNGR Finland, the commencement of production activities is planned to occur within the upcoming few years. CNGR Finland is a joint venture that was established in May 2022. The ownership of the company is divided between CNGR Advanced Material from China, which owns a majority stake of 60 percent and Suomen Malmijalostus Oy, which owns the remaining 40 percent.

Significance of the Environmental Permit

The company’s CEO, Thorsten Lahrs, expressed that acquiring the environmental permit represents a significant milestone for the company and its future endeavors. He emphasized that this development signifies the formation of a key competence center for the battery industry in the region, which is expected to have a positive, economic and employment-increasing effect.

Production Capacity and Energy Generation

The granted permit covers the production of nearly 60,000 tons of battery chemicals annually. According to CNGR, this production capacity equates to approximately 500,000 electric car batteries (77 kWh). Furthermore, the permit allows the factory to generate energy for its own production requirements.

Water Act Compliance and Waste Management

Included in Avi’s decision is a permit that complies with the Water Act. This involves the placement of the discharge pipe and dredging within the Hamina water area. The factory is permitted to lead purified waste water into the city’s waters through a pipe. Notably, the decision does not necessitate the removal of sulfate from the waste water, as Avi estimates that sulfate emissions will not pose a significant risk of environmental pollution, provided the project is executed in accordance with the permit.

Emission Limit Values

Avi has also defined the emission limit values for waste water and exhaust gases in the environmental permit. These values, which include emissions of metals, nitrogen and particles conducted into water and air, are based on guidelines approved by the European Commission for the chemistry field.

Hamina Factory: A Key Player in Battery Material Production

The factory, situated near the port of Hamina, is designed to produce the precursor of cathodic active material, also known as precursor material (pCAM). This material is used to manufacture the actual cathode active material (CAM), which is the primary raw material for electric car batteries. The factory has received investments amounting to approximately 500 million euros.

Future Plans

CNGR Finland has plans to establish another factory in the Kotka area, which would produce cathode-active material. This powdery end product is used in cell factories to manufacture the most valuable part of a battery cell, the cathode. The company’s vision for the battery cluster in the Kotka–Hamina region is to cover the entire value chain of battery production. Additionally, the company plans to build a raw material pretreatment and recycling plant in association with the battery material factory.

Appeal Period

Avi’s decision can be appealed until March 20, 2024.