Sibanye-Stillwater, a mining company, secured €500 (~$559) million in green financing for its Keliber lithium project in Finland through its subsidiary Keliber Technology Oy.
The Green loan comprises a bank-financed €250 (~$278) million Export Credit Agency (ECA) guaranteed tranche, a €150 (~$167) million tranche provided by the European Investment Bank (EIB), and a €100 (~$111) million syndicated commercial bank tranche.
“The funding package provides cost-effective, long-term funding for the balance of the Keliber project’s funding needs and significantly improves the group liquidity, effectively ring-fencing the existing group facilities for operational requirements confirms the viability and ESG credentials of the Keliber lithium project, as well as underscoring its strategic importance to the European clean energy transition,” said Sibanye-Stillwater CEO, Neal Froneman.
The Keliber lithium mining and battery chemical project is expected to produce up to 15,000 tons of battery-grade lithium hydroxide per annum. Production from third-party ore will start in 2025 and from own ore in 2026.
The project’s total capital expenditure is ~€656 (~$733) million (2023 terms) or ~€667 (~$745) million (adjusted for inflation), partially funded by a previously raised equity financing component of ~€250 (~$279) million. The loan proceeds will be allocated to the development, construction, and maintenance of the Keliber Lithium Project, which will focus on lithium processing and the production of lithium hydroxide.
“We see the Keliber lithium project as an integral part of the Finnish battery value chain and at the same time as the first integrated lithium project in Europe. The financing solution that has now been secured enables the construction phase to be completed and the production of battery-grade lithium hydroxide to begin,” said Matti Hietanen, CEO of Finnish Minerals Group.
Finnvera, the Finnish state-owned ECA, has provided a guarantee covering 80% of the €250 (~$279) million ECA tranche.
Bank of America and Natixis Corporate and Investment Banking acted as Joint Coordinators, bookrunners, and mandated lead arrangers for the entire financing package. Bank of America acted as the green loan coordinator and documentation agent, while Natixis acted as the facility agent, Finnvera, and EIB coordinator.
According to Mercom’s 1H and Q2 2024 Funding and M&A report for Storage and Grid, the funding landscape for Energy Storage companies is rapidly evolving. Debt and public market financing for these companies in 1H 2024 came to $13 billion in 16 deals, a 294% increase year-over-year compared to $3.3 billion in 16 deals in 1H 2023. This significant increase in funding reflects the growing importance of energy storage in the transition to clean energy.
In July, Liontown Resources, a battery minerals producer, secured a $250 million investment and a 10-year offtake extension from foundational partner LG Energy Solution, a manufacturer of lithium-ion batteries.
