[SMM Analysis] Sibanye-Stillwater's Keliber Lithium Project in Finland Advances to Staged Production

As of September 4th, The Keliber lithium hydroxide project, located in Central Ostrobothnia, Finland, is owned 79.82% by Sibanye-Stillwater, with Finnish Minerals Group holding 20% and other Finnish shareholders the remaining 0.18%.

The integrated project comprises seven proposed mining areas, the Päiväneva concentrator and a lithium hydroxide refinery at the Kokkola Industrial Park. Current production is centred on the Syväjärvi and Rapasaari opencast mining areas, with ore processed at the Päiväneva concentrator into spodumene concentrate before transport approximately 66 km to the Kokkola refinery. At full integrated production, the project is expected to produce approximately 15,000 t/y of battery-grade lithium hydroxide monohydrate over more than 18 years, and to employ more than 300 people during operations.

The amended 2022 definitive feasibility study estimated a net present value of €887 million at an 8% discount rate and an internal rate of return of 20%, based on a long-term lithium hydroxide price assumption of $26,034/t. Approved capital expenditure to complete construction is €783 million in 2024 real terms; cumulative construction phase capex reached €719 million as of June 30, 2026 excluding capitalised interest and exploration, following first half 2026 project expenditure of €58.5 million.

Mining at Syväjärvi began in February 2026, and hot commissioning of the Päiväneva concentrator started in April 2026, with stable spodumene concentrate production targeted for the second half of 2026. The project is being commissioned in stages, with mining and concentrator operations prioritised ahead of refinery commissioning, refinery ramp up timing will be determined based on operational readiness and lithium market conditions.

By June 30th, 2026, 217,500 t of ore had been mined at Syväjärvi, with an ore stockpile of 185,500 t established. During concentrator hot commissioning, the plant achieved continuous operating periods of up to 142 hours. Refinery work continues within the approved capital programme, including procurement of critical spares, remediation of issues identified during cold commissioning and testing, and reliability improvements ahead of future ramp-up. Metso supplied soda pressure-leaching technology for the project.

The staged approach allows remaining refinery capital and ramp-up expenditure to be aligned with operational readiness and prevailing lithium-market conditions, preserving capital flexibility amid current lithium hydroxide pricing.

Keliber represents one of the few integrated spodumene to hydroxide projects under development in Europe, positioning Finland as a potential domestic lithium hydroxide supply source for European battery and cathode manufacturers, reducing reliance on lithium chemical imports and adding a non-Chinese, non-African supply point to the global hydroxide market as the project transitions toward full ramp-up.