Currently, no European country produces lithium, the essential component that powers electric vehicles (EVs), smartphones and numerous other electronic devices. However, the EU has set an ambitious target to boost its self-sufficiency in sourcing critical metals, aiming for a 10 percent self-sufficiency rate in lithium.
While this target may seem modest, the fact remains that Europe has yet to produce the sought-after metal. This is anticipated to change in 2026, when Finnish mining company Keliber begins operations in the Central Ostrobothnia region. As the first lithium producer in Europe, Keliber plans to produce 15,000 tonnes of battery-grade lithium hydroxide annually.
Last year, Europe imported approximately 50,000 tonnes of lithium hydroxide for use in EV batteries. However, Keliber’s CEO, Hannu Hautala, notes that the automotive industry’s demand for lithium is soaring. “According to research, demand for lithium hydroxide is expected to rise to 550,000 tonnes by 2034. The electrification of vehicle traffic is ongoing, and there are no signs that automakers will revert to internal combustion engines,” Hautala explained.
Efficient extraction processes
With rising demand, efficient extraction methods are crucial. A project at the VTT Technical Research Centre of Finland, known as Lithos, is focused on developing more sustainable extraction processes while promoting a new industry within Europe. Mining operations are set to take place at several deposits, including Syväjärvi and Rapasaari.
During the blasting phase of quarry mining, ore is separated from surrounding rock. “This is where waste is first generated,” Hautala noted. Once extracted, the ore will undergo further separation through an automatic sorter before being processed at a plant in Kaustinen and then sent to a lithium hydroxide refinery in Kokkola. Ensuring precise equipment adjustments is key to maximizing lithium recovery.
Public perception and environmental concerns
Other European countries with lithium deposits include Serbia, Portugal and France. However, public opinion can significantly influence mining initiatives. “There’s a contradiction — we want lithium battery-powered products but may not realize that it requires more mining,” said VTT researcher Päivi Kinnunen.
Currently, most of the world’s lithium is sourced from Australia and Canada, with additional extraction occurring in Chile’s salt flats. The environmental impact of mining is a major factor shaping public attitudes. The enrichment phase of lithium production requires substantial water usage, which is purified and returned to the environment afterward.
VTT’s Lithos project aims to reduce water consumption by 90 percent and significantly cut carbon dioxide emissions compared to current practices in Asia. “Minimizing water use also reduces the need for purification, which is beneficial,” Hautala added.
Initiated about three and a half years ago, the Lithos project involves ten organizations, including four Finnish entities. In addition to Keliber, minerals processing equipment firm Metso plays a key role, with the EU contributing seven million euros to support the project.
