Commodities
Image source: Terrafame, 2022
Sector | Commodities, Energy |
Sub-sector | Metals, Chemicals |
Location | Finland |
Having completed construction of its €250 million battery chemicals plant in 2021, Terrafame is now able to refine these intermediates – previously sold as raw material to metal refining companies – itself. This moves the company forward in the refining value chain and enables it to produce nickel and cobalt sulphates, the key ingredients used in electric vehicle batteries.
The solution met the constraints of Terrafame’s existing capital structure while allowing them to retain full control over the marketing of their product. However, it has since undergone a refinancing exercise that resulted in early repayment of Macquarie’s working capital facility.
Outcome
Importantly, Terrafame’s production output supports the global energy transition, while the integrated production process, by having both mining and processing facilities on one industrial site, creates a highly energy-efficient and traceable value chain. As a result, the carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.2
Rohan Westcott
Executive Director, Commodities and Global Markets
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