Sibanye Stillwater announced that it has secured an additional €500 million ($557.30 million) in debt financing to advance its lithium mining project in Finland, despite the current downturn in lithium prices.
The Johannesburg-based precious metals producer stated that the loan, partially funded by the European Investment Bank (EIB), will support the development of the Keliber lithium project, which is expected to commence production in 2026.
James Wellsted, a spokesperson for Sibanye, emphasized the company’s belief in a future recovery for lithium prices and ongoing supply deficits. “We remain confident that market conditions will improve, leading to higher lithium prices,” Wellsted told Reuters.
In response to the significant drop in lithium prices, Albemarle, the world’s largest lithium producer, announced cost reductions and a review of its operations. Lithium prices have decreased by around 70% over the past year, largely due to lower-than-expected demand for electric vehicle batteries amid global economic uncertainties.
The Keliber project, in which Finnish Minerals Group holds a minority stake, is anticipated to produce approximately 15,000 metric tons of battery-grade lithium annually for at least 16 years. Although the project aims to supply European electric vehicle manufacturers and gigafactories, Sibanye has not yet begun selling the offtake.
Sibanye plans to begin processing third-party spodumene supplies at the Keliber plant in 2025, followed by concentrates from its own mine in the subsequent year. CEO Neal Froneman noted that the new financing will enhance the company’s liquidity and secure operational needs. Sibanye had previously raised around €250 million through equity for the project.
