CEO comments on 2020

Eurobattery Minerals is committed to providing the battery minerals needed for society’s electric transition at large, and specifically for the electric vehicle industry. With nickel, copper, cobalt and vanadium projects in Finland, Spain and Sweden, Eurobattery Minerals has made significant advancements during 2020, which is why I am pleased to present this annual report.

Like everyone, we have lived with the Covid pandemic since March 2020 and we are closely monitoring the developments. From a consumer demand perspective, the pandemic has not been seen to slow down the electric revolution. During the year, consumer demand for EV-cars and the constant increase of battery production capacity, combined with a clear political push from the EU to increase its self-sufficiency in these critical raw materials, has further strengthened our business’s basis as a European and sustainable foundation for the battery and EV-value chain. With the considerable investment going into the restart of the European economy post-pandemic, I am pleased to see that electrification and battery development are seen as cornerstones to this recovery and, as a consequence, will be vital to achieving the region’s ambitious climate targets.

Let me summarise the year, starting with our projects in Finland, Spain, and Sweden. In May 2020, we expanded our footprint as we concluded an investment and shareholders agreement with the Hautalampi project in eastern Finland. The deal gives us the option for a staged acquisition of 100 per cent of the shares in the Vulcan Hautalampi Oy and its nickel, copper and cobalt project. Via drilling campaigns conducted in 2020, it is confirmed that Hautalampi has a significant potential for resource expansion. In combination with the submission of the environmental impact assessment procedure and the development grant the project was awarded in 2020, I am looking forward to seeing this important project’s progression.

Close to Hautalampi, Vulcan Hautalampi Oy has also been granted a preliminary exploration permit for the Hietajärvi Project. The project covers over 289 km2 of ground highly prospective for cobalt, copper, nickel and zinc deposits.

In our Corcel project in Spain, we have three primary prospect zones that include Castriz, Monte Mayor and Monte Castell. Our exploration efforts have so far focused on the Castriz prospect. During 2020, we conducted extensive mineral tests and analysis of the nickel, copper and cobalt drill core samples. The results of the analysis confirm high-value nickel sulphide minerals as the dominating asset in the Castriz deposit. Sulphide minerals are the preferred raw materials for the EV battery manufacturing industry, making Corcel a potentially vital source of battery minerals. We are working on identifying ways to maximise our discovery’s value by identifying potential massive sulphide zones and assessing the optimal mineral processing option.

In Sweden, we have seven exploration permits in the north of the country, focusing on critical battery minerals such as nickel-copper-cobalt and rare earth elements as well as vanadium. During the year, we conducted desktop studies to assess the broader potential of these projects. Our main attention has been on our Fetsjön project in Västerbotten. We collaborate with Uppsala University and the AGH University of Science & Technology in Krakow on sustainable mining methods. Sustainable sourcing with a focus on ethics and traceability is the core business of our company. Together, we have joined forces with other stakeholders in the EV and mining industry and work with third-party verification and certification. We believe that the electric revolution should be built on sustainable raw material.

Looking at the financial situation, I am pleased to have raised an additional SEK 90 million in 2020 from existing and new shareholders via a rights issue and a warrant trade. In all, we are well-financed for our future work, and I am grateful for your support.

As this report is published late in the spring, we are already a long way into 2021, and the expansion into Germany and the dual listing has further elevated our business strategy. In conclusion, we are well-positioned to provide Europe with sustainable battery minerals for the electric revolution.