Anglo American Embarks on Lithium Exploration in Finland with Finnish Minerals Group
Mining titan Anglo American has announced a collaboration with the Finnish Minerals Group (FMG) to advance Finland's ambitious battery strategy. This partnership underscores Anglo American's foray into securing lithium offtake deals amid escalating global demand for EVs, despite the company's current absence of lithium mining assets.
Alison Atkinson, Anglo American's Projects & Development Director, lauded Finland as an ideal investment destination, celebrated for its mining heritage and innovative prowess. The collaboration with FMG is set to leverage Finland's mineral wealth, aligning with both the country's and the European Union's critical mineral priorities, including lithium, pivotal for EV batteries.
The global shift towards green energy, backed by significant investments, has elevated the demand for materials like lithium and cobalt, transforming them from minor commodities to highly sought-after green assets. Anglo American, while not directly involved in lithium mining, possesses critical assets in copper, essential for renewable infrastructure development.
This agreement with FMG follows Anglo American's recent initiation of a research & development project with GEM, a leading Chinese battery recycler, aimed at enhancing raw material efficiencies for EV batteries. The move is particularly strategic given China's dominance in the EV market, with sales projections hitting 8 million vehicles in 2023.
The announcement also arrives amidst Anglo American's strategic adjustments to reduce medium-term capital expenditure by $1.8 billion through 2026, in response to fluctuating commodity prices and pressures within the Platinum Group Metals (PGMs) sector.
Anglo American, a key contributor to South Africa's mining sector and corporate tax base through its major stakes in Kumba Iron Ore, Anglo American Platinum (Amplats), and De Beers, now looks to Finland to diversify and strengthen its portfolio in the green transition era.
FMG, wholly owned by the Finnish state, aims to catapult Finland into a leading position within the global mining and battery sector, exploiting the rising demand for lithium in energy storage solutions. The collaboration with Anglo American is seen as a synergistic venture, blending local expertise with Anglo's global mining and sustainability leadership.
The Finnish initiative is part of a broader industry trend, with companies like Sibanye-Stillwater investing heavily in Finland's lithium and nickel resources, in partnership with FMG, to secure a foothold in the battery metals market amidst commodity market downturns.
