March 6, 2025: Battery chemicals firm Terrafame has announced a €100 million ($107 million) financing deal to fund its investments over the next few years.

Finland-based Terrafame said on February 27 that its main owners, the Finnish Minerals Group and Galena funds, had agreed the financing arrangement comprising a €50 million shareholder loan and a €50 million equity financing commitment.

In addition, Terrafame has agreed on a €50 million advance payment arrangement with trading house Trafigura.

Terrafame said it had also agreed on a one-year extension to the maturity of an existing €250 million bank loan agreement as well as on extending a €65 million revolving credit previously received from Finnish Minerals Group for the same period.

The new maturity of the bank loan and the revolving credit ends in December 2028.

Ville Sirviö, CFO of Terrafame, said: “With these new arrangements, Terrafame will finance its ongoing significant investments, which will secure the continuation of operations far into the future.”

Terrafame, founded in 2015, has one of the world’s largest production lines for chemicals used in electric vehicle batteries. It is capable of producing nickel sulphate for around one million EVs annually.

The company’s net sales in 2023 were €561 million. 

In 2023, Terrafame and Finnish power company Fortum agreed to partner up for  an experimental battery recycling project.

The project, which will span several years, aims to use metals that energy company Fortum recovers from lithium ion battery black mass in Terrafame’s battery chemical production.