[SMM Flash] California Opens Expanded Advanced Lithium-Ion Battery Factory

Fu-Gen has completed the sale of the 100 MW Kärppiö standalone battery project in Teuva, Finland, to Nala Renewables, with the asset at the ready-to-build stage and construction expected to begin during 2026. The transaction is the third closing under the parties’ Finnish battery portfolio framework signed in 2025 and expands Nala’s related pipeline in the country to 275 MW/550 MWh. Transaction value was not disclosed, and the milestone confirms ownership transfer and construction readiness rather than operational commissioning.

On October 2(nd), Sigma Lithium has suspended all mining and industrial activities at its Grota do Cirilo operation in Brazil, its sole producing asset, pending a federal appeals court ruling on a preliminary injunction over its environmental licences. Brazil's national mining agency (ANM) had ordered mining halted on the eastern slope of the north pit. Concentrate output from the site is halted during the suspension, and sales of lithium fines continue. Sigma pushed back its 12-month production guidance of 240,000 mt by three months and maintains its FY2027 target of 330,000 mt of concentrate.

Lithium Argentina confirmed a Stage 2 expansion at the Cauchari-Olaroz salt lake project in Argentina, adding 45,000 mt/y of lithium carbonate capacity and lifting total capacity to 85,000 mt/y. Of this, an initial 10,000 mt/y module using adsorption direct lithium extraction (DLE) is expected online in 2028. This estimates after-tax NPV at $3.1 billion and IRR at 28.5% at a lithium carbonate price of $18,000/mt, with operating costs of $5,006/mt. Total investment for Stage 2 is $1 billion. The project remains subject to regulatory approvals, and detailed engineering for the initial module is due later this year. The additional supply is scheduled from 2028 onward.