CNGR Advanced Material Ltd has decided to withdraw from the planned precursor cathode active material (pCAM) plant project in Hamina, Finland. (Earlier post.) As a result, Finnish Minerals Group has acquired the entire share capital of CNGR Finland. Finnish Minerals Group previously held a 40% minority stake in the company.

CNGE said the decision stems from the globally challenging market situation for precursor materials used in lithium-ion battery production. There is a significant overcapacity in China and the Pacific region and tariffs imposed by the US have created uncertainty in the electric vehicle market, forcing companies to make adjustments.

Finnish Minerals Group is now taking time to review the preconditions for continuing the project on a different basis.

In February 2024, CNGR Finland received an environmental permit for the plant that is planned for the Hamina deep-sea port. Appeals against the permit are still pending in the Vaasa Administrative Court, with a decision expected during spring 2025.

Finnish Minerals Group manages the State’s mining industry shareholdings and is working to develop the Finnish value chain of lithium-ion batteries.