Good News from Fri, 02 October, 2009:

Center for European lithium production being established in Ostrobothnia

Kokkola region of Western Finland has been discovered to contain a world-class lithium deposit, which could turn Finland into the biggest producer of lithium batteries in Europe. The demand on lithium, which belongs to alkali metals, will grow greatly in the coming years. The chemical element is needed for instance in the manufacture of batteries.

Nearly all new mobile phones and computers run on lithium battery. Growth in lithium battery manufacture is foreseeable also within the vehicle industry, because electric and hybric cars run on rechargeable batteries. The batteries of mobile phones and computers require only a few grams of lithium. The scale is entirely different with electric cars, since even the smallest electric and hybrid cars require a battery with 7,5 kilograms of lithium carbonate.

- The extent of the battery market is estimated to about 30 billion dollars. Even wider markets are expected to open within wind power, wave and solar energy, and in different kinds of electric systems. Lithium batteries suit perfectly for storing these types of energy forms, tells the CEO of Keliber Oy, Olle Sirèn to Tekniikka & Talous magazine.

Keliber holds the mining- and exploration rights for three lithium deposits in the Central Ostrobothnia region. The excavations will be started in Ullava area of Kokkola. The concentration and production activities will be centralized in the nearby municipality of Kaustinen.

- There is a three million ton lithium-deposit in Ullava. With one per cent lithium concentration we are talking of a world-class deposit, says Sirèn.

Keliber has great ambitions within the lithium business. Ullava is only the beginning. 12 confirmed deposits have been discovered, and there are indications that more are yet to be found.

The recession has delayed the construction work in Ullava. The launching of the project depends on the Norwegian major shareholder, but production should be up and running in the next two years. The funding for the small-scale mining company Keliber was backed up, when Norwegian Nordic Mining bought nearly 70 per cent of the Finnish lithium project.

Keliber has been supported by the Finnish Funding Agency for Technology and Innovation, Tekes, in developing new production methods for lithium. The project has been supported also by the Geological Survey of Finland, VTT Technical Research Centre of Finland, Outotec and the University of Oulu.

www.keliber.fi

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