Sibanye Stillwater has announced the acquisition of an additional €500 million ($557.30 million) in debt financing to advance its Keliber lithium project in Finland, despite a recent slump in lithium prices. This financing, partially supported by the European Investment Bank (EIB), is aimed at bringing the lithium mine into production by 2026.
The Johannesburg-based company, which primarily mines gold and platinum, remains optimistic about the future of lithium prices. Spokesperson James Wellsted expressed confidence in potential market deficits that could drive prices higher.
Lithium prices have dropped approximately 70% over the past year due to weaker-than-expected demand for electric vehicles, compounded by high borrowing costs and global economic uncertainty. In response to these market conditions, Albemarle, the world’s largest lithium producer, has announced cost-cutting measures.
The Keliber project, which also involves Finnish Minerals Group as a minority stakeholder, is projected to produce around 15,000 metric tons of battery-grade lithium annually for at least 16 years. While the project is expected to support European electric vehicle manufacturers, Sibanye has yet to finalize any sales agreements for the lithium produced.
Sibanye plans to begin processing third-party spodumene supplies at the Keliber plant in 2025, followed by concentrates from its own operations in 2026. The latest financing is intended to bolster the company’s liquidity and ensure operational stability.