【SMM Analysis】Sibanye Stillwater's Finnish Lithium Project Costs Surge 17%, 2026 Production Timeline Remains Unchanged

South African mining giant Sibanye Stillwater announced on Friday that the estimated total cost of its Keliber lithium project in Finland has been revised upward by 17% to €783 million (approximately $880 million), primarily due to regulatory changes and adjustments to the project scope.

As the majority shareholder with a 79.8% stake, the company stated in its operational update: "The revised total capital expenditure for the development and construction phase through to the hot commissioning stage of the refinery has increased by €116 million." By the end of March 2025, the project had already incurred cumulative expenditures of €508 million, while the 2025 capital expenditure budget was also raised from the originally planned €215 million to €300 million.

This key European lithium resource project is expected to commence production in 2026, with an annual output of 15,000 metric tons of battery-grade lithium products and a minimum operational lifespan of 16 years. In August last year, Sibanye secured €500 million in debt financing, partially backed by the European Investment Bank, to support the project.

The company emphasized that construction is "progressing well," with the refinery still on track for trial production in the first quarter of 2026. The cost increase primarily stems from enhanced environmental compliance requirements and infrastructure expansion but does not affect the scheduled production timeline. Against the backdrop of accelerating global energy transition, this project will contribute to the EU's efforts to establish a localized lithium battery supply chain.