EIT RawMaterials has announced a €0.5 million seed investment in Novana, a Finnish subsidiary of Neometals, to support its Vanadium Recovery Project (VRP1) in Pori, Finland. This innovative project aims to produce high-purity vanadium pentoxide (V2O5) from steelmaking slag while significantly reducing CO2 emissions compared to traditional methods.
The investment is part of a broader strategy to help Novana secure an additional €400 million in equity and debt financing, with leading Nordic bank SEB and Aventum managing the fundraising. The European Investment Bank (EIB) has conditionally approved debt financing, recognizing the project’s strategic importance for Europe’s resource independence.
With this initiative, Novana aims to become Europe’s first domestic producer of V2O5, projected to supply over 40% of the continent’s annual demand and eliminate up to 1.5 million tonnes of CO2 over the next decade. EIT RawMaterials’ investment grants them a 1.1% stake in Novana, with the option for further investment based on project milestones.
Both EIT RawMaterials and Novana emphasize the importance of this project for enhancing Europe’s circular economy and reducing dependency on imported vanadium, vital for high-strength steel alloys and emerging technologies like Vanadium Flow Batteries. Novana’s CEO, Johanna Lamminen, expressed optimism about securing further funding and beginning construction soon, with strong backing from Finnish State and EU initiatives.
