Matti Hietanen is CEO of Finnish Minerals Group and vice chairman of the board of Terrafame Oy.

1. Developing the Finnish
electric vehicle battery value chain
February 2021

2. Introduction to
Finnish Minerals
Group

3. We are a special-purpose company
owned by the State of Finland
3
66.8% 26.3% 100%
Terrafame Oy Keliber Oy Sokli Oy
100%
Finnish Battery
Chemicals Oy
Holdings in the end of 2020.

4. 4
Finnish Minerals Group strategy in a nutshell
Mission
Responsibly maximising the
value of Finnish minerals
Vision
We will bring active and competent
capital to a technologically advanced
mining industry
We will create an integrated electric
vehicle battery value chain in Finland
Special Purpose
Government’s holding and
development company for mining
industry and battery value chain
Values
Curiosity and renewal
Courage and vision
Long-term cooperation
Business areas and strategic objectives
EVB value chain
development
Technological
development
We create value and make long-
lasting societal impact with our
investments.
Through our adaptive approach to
ownership we enable success of
commercially attractive developments
and growth projects
We create a sustainable value chain
for electric vehicle batteries in Finland
We attract investments by offering
strategic partnerships with unique
access local expertise and capital
We create new opportunities for
sustainable European mineral value
chain through cutting-edge R&D
The excellence gained through
R&D ensures technologically and
sustainably robust business
development and investment
decisions Active ownership
Responsibility themes
Social impact
A sustainable value chain
Responsibility for the environment and climate
Responsibly
maximising
the value of
Finnish
minerals

5. We are working on three responsibility themes
5
+ New high-tech jobs to Finland.
+ Economic value added from raising the
degree of processing raw materials.
+ Responsible actions throughout the value
chain and in partnerships.
+ Structured stakeholder work and
dialogue to strengthen acceptability.
+ Initiatives to minimise environmental
impact and promote the circular economy.
+ Support for the Paris Agreement and
achieving a carbon neutral Finland by
2035.
SOCIAL
IMPACT
SUSTAINABLE
VALUE CHAIN
RESPONSIBILITY
FOR THE
ENVIRONMENT AND
CLIMATE
1
2
3

6. 6
 We operate at the Finnish
and EU levels on a long-
term basis in industrial
and R&D communities.
 The aim of our work is to
promote industrial renewal
and strengthen
competitiveness.
 Our Technology team also
provides technological
expertise to our projects.
ENHANCING
RAW MATERIAL
POTENTIAL
EFFICIENT
PROCESSES
AND
TECHNOLOGIES
SUSTAINABLE
SOLUTIONS
FOR WATER
AND WASTE
RESPONSIBLE
SOURCING
1 2
3 4

7. Our portfolio companies

8. Terrafame is gearing up for battery
chemicals production
 Multi-metal company producing nickel, zinc, cobalt and copper.
 Currently building a battery chemicals plant in Sotkamo.
 Production of nickel and cobalt suphates will start in 2021.
 Our largest asset based on appr. 70 percent ownership.
 Terrafame’s nickel sulphate production offers the lowest carbon footprint in the industry
8
Source: Life Cycle Assessment, Sphera Solutions GmbH
*Life Cycle Assessment of Nickel Products, Nickel Institute

9. Keliber’s lithium project
has potential
9
 Published the final feasibility study in 2019 based on lithium
hydroxide production.
 Battery grade lithium hydroxide produced successfully in a
pilot in January 2020.
 Construction project expected to start in the next few years.
 Potential for increased ore reserves and valuable by-products.
 Finnish Minerals Group is the largest shareholder of Keliber
with 26.3 percent ownership.

10. 10
Sokli mining project acquired
in the end of 2020
 Finnish Minerals Group acquired the rights to the Sokli
mining project from Yara Suomi Oy in December 2020.
 The new mining concession will be approximately 5,900
hectares in size.
 In addition to phosphorus and iron, the ore contains e.g.
rare earth elements.
 Our next goal is to analyse the development potential of
the project.
SAVUKOSKI

11. Gearing up for the battery
value chain development

12. 12
European EVs to grow at 40% p.a. until '25
Regulation
driven
TCO
driven
Passenger cars incl. pick-up trucks
Volume (M)
1. Internal combustion engine (incl. Gasoline and Diesel vehicles) 2. Battery electric vehicle 3. Plug-in hybrid electric vehicle 4. Hybrid electric vehicle 5. Mild hybrid electric vehicle
Source: IHS automotive 2020, BCG analysis
• Total xEV growth 40% '20-'25
and 4% '25-'30 post COVID
• EV sales expected to
recover after covid due to
strong regulation drive
• Growth beyond '25 due to
favorable TCO
Comments
European demand
15%
8%
4%
3%
10%
8%
54%
2020
2%
2030
9%
81%
25%
6%
46%
2025
21%
6%
21
15
20
+5.7%
+0.6%
MHEV5
pre-covid
BEV2
PHEV3
HEV4
ICE1 -17% -16%
47% 4%
28% 0%
25% 2%
39% 9%
1% 1%
CAGR
'20-'25 '25-'30

13. 13
European cell capacity outlook exceeding 400 GWh/a…
Source: Benchmark Minerals, extract 11.03.2020

14. 14
…creating opportunities for European supply chains
Note: Based on nickel rich chemistries, such as NMC811
Cells 400 GWh
LiOH 268 kton
CAM 620 kton
pCAM 590 kton
NiSO4 1,346 kton CoSO4 178 kton MnSO4 110 kton
Ni-cont. 300 kton Co-cont. 37 kton
The company’s raw material suppliers
will have to meet stringent audits that
trace the metal down to the mine,
Daimler said.
Financial Times, 11 Dec, 2018
”When we say that we are delivering a
carbon-neutral vehicle, this naturally
includes battery cell production.”
Thomas Ulbrich, member of the VW Board of
Management, Suddeuthsche Zeitung 28 Dec, 2018
BMW will no longer purchase cobalt
from the DRC with the introduction of
the fifth generation of electric vehicles
from 2020/21.
Andreas Wendt, member of BMW Board,
electrive.com, 26 Mar, 2019

15. ESG as a competitive
advantage
Finland has
a unique offering

16. FURTHER PROCESSING
CAPABILITY annual capability
Finland has the leading EVB material refineries
and is the only source of selected minerals in
Europe
16
+ Cobalt demand to
increase by 2–2.5x
by 2025
Co
+ Battery-grade nickel
demand to increase
by 5–6x by 2025
Ni
+ Lithium demand to
increase by ~4–5x
by 2025
Li
FINNISH RAW MATERIALS
annual capacity
~7 kt cobalt sulphate
~ 16 GWh
210–400.000 BEVs1)
TERRAFAME
~170 kt nickel sulphate
~ 51 GWh
650 t–1,3 mill BEVs1)
TERRAFAME
~11 kt LCE2)
~ 20 GWh
260–440.000 BEVs1)
KELIBER
~40 kt cobalt sulphate
~ 95 GWh
FREEPORT COBALT / UMICORE
Nickel matte
sourced
from Russia.
NORNICKEL – BASF
~13 kt LCE2),
sourced spodumene
~ 24 GWh
KELIBER
1 NMC811 technology, full Battery EV (BEV) battery pack range 40–77 kWh
2 Estimated start in the first half of 2020s

17. 17
0.3
0.8
1.2
-62%
3.1
0.6
1.9
-69%
9.3
20.5
30.7
-55%
 Finnish energy infrastructure is the
most reliable in Europe and generation
mix is predominantly CO2 free
 Long term renewable power purchase
contracts available at very competitive
cost, indicatively 30–35 €/MWh
 Key raw materials available close to
processing sites thus minimizing
logistics costs and emissions
CAM
production
Cell
production
Pre-cursor
production
With 100% renewable
power the CO2 emissions
will be further reduced.
CO2 emissions, 1,000 ton CO2
per 1 GWh cell equivalent
In Finland, it’s possible to produce cells and cathode
materials with low carbon emission

18. We are developing a sustainable electric
vehicle battery value chain in Finland
18
Raw materials
Chemicals /
salts
Processed
materials
Cell & pack
Downstream
applications
Second life use
& recycling
Nickel ore
Cobalt ore
Lithium ore
Nickel sulfate
Cobalt sulfate
Lithium
hydroxide
Cathode
materials
Anode
materials
Electrolyte
materials
Consumer
electronics
Electric
vehicles
Energy
storage
Battery material
recycling
Energy storage
for second life
Battery cell
Battery
management
system
Separator
materials
Pre-cursor
materials
Cathode
active
materials
Cell Pack
New
partnerships

19. We’re preparing for the battery
value chain investments
19
KOKKOLA
VAASA
KOTKA
HAMINA
 Our project company Finnish Battery Chemicals Oy has an
Environmental Impact Assessment (EIA) ongoing on precursor
and cathode active materials plants in Kotka and Hamina.
 Alongside the EIA procedure, we are continuing the investment
negotiations with technology partners.
 Furthermore, we have cell manufacturing and recycling
technologies high on our agenda.

20. Mallinnettu viistoilmakuva akkumateriaalituotantorakennusten
(pCAM) sijoittumisesta Haminan hankealueelle. Kuvan
näkymäsuunta on kohti etelää. Petkeleen asuinalueet
sijoittuvat kuvan oikeaan yläkulmaan.
Tuotantolaitoksen rakennusten ja rakenteiden tarkasta
sijoittumisesta ja muodosta ei ole vielä olemassa varmaa
tietoa. Arvioinnissa käytetyt havainnekuvat ovat suuntaa
antavia eivätkä täysin kuvaa tuotantolaitosten rakentamisen
lopputilannetta. Rakennusten muoto voi poiketa
havainnekuvissa esitetystä. Havainnekuvissa esitettyjen
rakennusten likimääräiset korkeudet ja rakennusten karkea
sijoittuminen vastaavat lopputulosta.

21. Mallinnettu viistoilmakuva
akkumateriaalituotantorakennusten (CAM)
sijoittumisesta Kotkan hankealueelle. Kuvan
näkymä on kohti etelää. Ristinkallion
teollisuusalue rajautuu hankealueeseen kuvan
ylälaidassa.
Tuotantolaitoksen rakennusten ja rakenteiden
tarkasta sijoittumisesta ja muodosta ei ole vielä
olemassa varmaa tietoa. Arvioinnissa käytetyt
havainnekuvat ovat suuntaa antavia eivätkä
täysin kuvaa tuotantolaitosten rakentamisen
lopputilannetta. Rakennusten muoto voi
poiketa havainnekuvissa esitetystä.
Havainnekuvissa esitettyjen rakennusten
likimääräiset korkeudet ja rakennusten karkea
sijoittuminen vastaavat lopputulosta.

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