Fortum and Terrafame to collaborate on recycling battery materials — a step forward for the sustainability of the Finnish battery cluster
The aim of the collaboration is to create a sustainable recycling value chain for future needs.
Fortum and Terrafame have signed an agreement for an experimental project in which metals recovered from the black mass of EV batteries by Fortum will be utilised in Terrafame’s battery chemical production. The collaboration between Fortum and Terrafame will enable an even more sustainable value chain to meet the needs of the European battery manufacturing industry.
Under the agreement, Fortum will supply nickel and cobalt recovered from the black mass of used EV batteries at the Harjavalta recycling plant to Terrafame, which will use the recycled raw materials to produce battery chemicals for new EV batteries. At the end of their life cycle, the batteries will be recycled again, thus closing the circulation of recoverable raw materials.
The collaboration between Fortum and Terrafame is an excellent demonstration of the potential and synergy of the Finnish battery cluster.
“We are very pleased to be part of producing even more sustainable battery chemicals whilst contributing to the sustainability of the Finnish battery cluster. In addition, the collaboration with Terrafame is a step towards a more self-sufficient European battery manufacturing industry with less need to use imported raw materials,” says Tero Holländer, Head of Business Line Batteries at Fortum Battery Recycling.
“Our collaboration with Fortum is the first step towards wider recycling-based battery chemical production. The battery chemicals we produce already have the smallest carbon footprint in the market. With recycling, we can further develop the sustainability of our products, while expanding our raw material base,” says Joni Lukkaroinen, CEO of Terrafame.
The need for battery chemicals is growing rapidly, and in Europe, new solutions are constantly sought to ensure the availability of raw materials for EV batteries. Although fully replacing the mining of primary raw materials, such as nickel and cobalt, with recycled materials is not possible in the near future, the EU’s upcoming sustainable battery regulations will require a gradual increase in the use of recycled materials in battery manufacturing. Battery, electronics and car manufacturers must already prepare for new legislation, as the first minimum requirements for the recovery of battery materials, such as cobalt, nickel and lithium, will take effect in 2026.
Fortum and Terrafame’s experimental operations will begin in June and the collaboration is expected to span several years. The aim of the collaboration is to create a sustainable recycling value chain for future needs.