Press release

Fortum and Terrafame to collaborate on recycling battery materials — a step forward for the sustainability of the Finnish battery cluster

14 June 2023, 15:00 EEST


Fortum and Terrafame have signed an agreement for an experimental project in which metals recovered from the black mass of EV batteries by Fortum will be utilised in Terrafame’s battery chemical production. The collaboration between Fortum and Terrafame will enable an even more sustainable value chain to meet the needs of the European battery manufacturing industry.

Under the agreement, Fortum will supply nickel and cobalt recovered from the black mass of used EV batteries at the Harjavalta recycling plant to Terrafame, which will use the recycled raw materials to produce battery chemicals for new EV batteries. At the end of their life cycle, the batteries will be recycled again, thus closing the circulation of recoverable raw materials.

The collaboration between Fortum and Terrafame is an excellent demonstration of the potential and synergy of the Finnish battery cluster.

“We are very pleased to be part of producing even more sustainable battery chemicals whilst contributing to the sustainability of the Finnish battery cluster. In addition, the collaboration with Terrafame is a step towards a more self-sufficient European battery manufacturing industry with less need to use imported raw materials,” says Tero Holländer, Head of Business Line Batteries at Fortum Battery Recycling.

“Our collaboration with Fortum is the first step towards wider recycling-based battery chemical production. The battery chemicals we produce already have the smallest carbon footprint in the market. With recycling, we can further develop the sustainability of our products, while expanding our raw material base,” says Joni Lukkaroinen, CEO of Terrafame.

The need for battery chemicals is growing rapidly, and in Europe, new solutions are constantly sought to ensure the availability of raw materials for EV batteries. Although fully replacing the mining of primary raw materials, such as nickel and cobalt, with recycled materials is not possible in the near future, the EU’s upcoming sustainable battery regulations will require a gradual increase in the use of recycled materials in battery manufacturing. Battery, electronics and car manufacturers must already prepare for new legislation, as the first minimum requirements for the recovery of battery materials, such as cobalt, nickel and lithium, will take effect in 2026.

Fortum and Terrafame’s experimental operations will begin in June and the collaboration is expected to span several years. The aim of the collaboration is to create a sustainable recycling value chain for future needs.

Fortum Corporation


For further information, please contact:

Maiju Daniel-Huhtaniska, Communications and Marketing Manager, Fortum Battery Recycling, tel. 358 50 350 2861, maiju [dot] daniel-huhtaniska [at] fortum [dot] com

Fortum News Desk tel. 358 40 198 2843, newsdesk [at] fortum [dot] com 

Joni Lukkaroinen, CEO, Terrafame Ltd, tel. +358 20 7130 800 (switchboard), joni [dot] lukkaroinen [at] terrafame [dot] fi

Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki.

Fortum Battery Recycling
Fortum Battery Recycling is part of the Fortum portfolio. Fortum Battery Recycling is a specialist in recycling of valuable metals in ev batteries. It’s low-CO2 battery recycling solution makes it possible to recycle over 80% of the battery with 95% of the valuable metals contained in the battery's black mass to be put back into circu­lation.

About Terrafame
Terrafame enhances low-carbon mobility by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric car batteries is located on Terrafame’s industrial site. The plant is capable of producing nickel sulphate for around 1 million electric cars per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry. Terrafame’s integrated, unique and energy-efficient production process from the mine to battery chemicals is located on a single industrial site. It provides customers with a transparent, traceable and truly European battery chemical supply chain. Terrafame Ltd was founded in 2015. Its net sales in 2022 were EUR 584 million. Around 1,500 people work on its industrial site, half of whom are employees of partner companies.