FinnCobalt, owned to 100% by Eurobattery Minerals AB, is actively participating in the BATCircle Project. This is a Finnish initiative which focuses on improving the competitiveness and sustainability of the country´s battery value chain, adding value to Finnish battery materials and also the refining and recycling sectors.

“Our participation in the BATCircle projects reflects Eurobattery Minerals' dedication to advancing sustainable, circular solutions for the battery industry. This collaboration has not only strengthened Finland’s role as a leader in the battery value chain but also aligns perfectly with our mission to drive responsible mineral production in Europe. By working alongside industry and academic leaders, we are contributing to vital innovations in recycling, refining, and environmentally conscious practices that will support Europe’s transition to a sustainable and self-sufficient battery ecosystem,” says Roberto García Martínez, CEO of Eurobattery Minerals.

The first phase of BATCircle (2019-2021) was followed by BATCircle2.0 (2021-2024), and this is when FinnCobalt entered the project. The second phase broadened its focus to cover the entire chain – from resource exploration and mining to refining, processing, and recycling of battery components. This project united Finnish businesses and research institutions, with additional guidance from an international advisory board to strengthen its influence across Europe and globally.

The third phase of the project has just been announced and it comes at a time when Europe is adapting to the CRMA and battery demand is growing exponentially. Business Finland has granted the BATCircle Consortium with 13.4 million euros for the next three years. BATCircle3.0 represents one of the most relevant and timely research areas as it targets the material transition in energy storage and is especially focused on battery materials refining and battery recycling. FinnCobalt is a full member of the BATCircle Consortium.

After six years of collaboration and research, the BATCircle Project has positioned Finland as a global leader in the lithium-ion battery supply chain and strengthened the cooperation between companies and research organizations in Finland.

Some highlights of the BatCircle Project, 2019-2024:

• The whole value chain: From exploration and mining to refining, processing, and recycling of battery materials.
• Strong focus on ESG: Recognized for its environmental, social, and governance standards.
• Significant research output: Over 80 peer-reviewed articles, 45+ theses, and numerous conference presentations.

The involvement of FinnCobalt strengthens Eurobattery Minerals’ commitment to sustainable battery mineral production and collaboration across industry and academia. The project operates under Business Finland's “Batteries from Finland” programme and aligns with EU goals for responsible and circular battery materials production, positioning FinnCobalt and Eurobattery Minerals at the forefront of sustainable mineral development in Europe.

Link to the official announcement from the BATCircle Consortium: https://www.aalto.fi/en/news/battery-demand-is-growing-exponentially-batcircle30-provides-a-leap-in-battery-material-and

Eurobattery Minerals CEO Roberto García Martinez says executing the agreement with an industry major such as Boliden is a significant milestone for the Company.

"Today is an extraordinary day for Eurobattery Minerals, for the Outokumpu Municipality and for the future of responsible mining in Europe. It´s a fantastic achievement for the team at the Company and the offtake agreement with Boliden creates the right conditions for the planned carbon-zero production of critical raw materials at our battery mineral project in Finland. During our negotiations with Boliden, we have established a close relationship and we are looking forward to a fruitful future collaboration. Boliden is a very important partner that has increased its efforts and ambitions for Europe and the Nordics. Their strategic focus and vision are well in line with our own goals and values. This was the first step in the process and we continue to work on possible offtake agreements for nickel and cobalt," continues Roberto García Martínez.

Information about the 10-year non-binding offtake agreement
The agreement with Boliden has been entered into by our Finnish subsidiary FinnCobalt Oy, which is owned to 100% by Eurobattery Minerals. The accord is a long-term purchase agreement for the Hautalampi concentrates. In the evaluation, Boliden has assumed an agreement for the full copper concentrate production and a long-term duration of minimum 10 years. The concentrates will be handled by Boliden Harjavalta Copper Smelter in Harjavalta, Finland and/or the Boliden Rönnskär Copper Smelter located in Rönnskär, Sweden.

About the Hautalampi Battery Mineral Project
The Hautalampi project and its mineralization is located 345 km from Helsinki, in the well-known Outokumpu Mining Camp Area. The mineralization is located in the same region as the well-renowned Keretti mine where approximately 28.5 million tonnes of copper ore were mined between 1912–1989. The project consists of one mining concession covering 277 hectares with exposure towards cobalt, nickel, and copper. A pre-feasibility study from 2023 indicates that Eurobattery Minerals will produce around 500,000 tonnes of ore from the underground mine per annum, with an expected mine life of +12 years. The minerals resources have been classified in the highest categories as viable mining projects according to UNFC and the Environmental Permit Application was submitted at the end of April 2024.

About Boliden AB
Boliden's vision is to be the most climate-friendly and respected metal provider in the world. The company is a European producer of sustainable metals. They operate within exploration, mines, smelters, and recycling, guided by their values which are care, courage, and responsibility. Boliden has around 6,000 employees and has annual revenues of approximately SEK 80 billion. The share is listed in the Large Cap segment of NASDAQ OMX Stockholm.

I´m very pleased that we have now finished the acquisition process. This process started back in spring 2020 and since then we have put in a significant effort at the Hautalampi battery mineral project, for example, a positive pre-feasibility study and being classified in the highest categories as viable mining projects in the United Nations Framework Classification for Resources (UNFC). All this hard work was crowned by the submission of the Environmental Permit Application at the end of April this year. All this means we are perfectly on track to start the mining operations at the Hautalampi project as soon as the EPA is approved,” said Roberto García Martínez, CEO of Eurobattery Minerals.

The Hautalampi project in brief
The Hautalampi project is located near Outokumpu, Finland, in the same spot as the well-renowned Keretti mine where approximately 28.5 million tonnes of rock with a copper content of 3.8 per cent were mined between 1912–1989. The project consists of one mining concession covering 227 hectares with exposure towards nickel, cobalt, and copper, and a nearby reservation. The area benefits from well-developed surface and underground infrastructure as well as strong local support for mining. An estimated EUR 10–15 million had been invested in the project by previous owners before the project was assumed by Eurobattery in the spring of 2020. In June 2021 Eurobattery was able to increase the project’s measured, indicated, and inferred resource tonnage by approximately 100 per cent and the metal content by approximately 50 per cent. In October 2022, the Company was able to confirm a further increase in the metal content of approximately 40 per cent. On 20 March 2023, the Company published a preliminary feasibility study (PFS) for the Hautalampi project which highlighted the opportunities and potential challenges of advancing the development of the Hautalampi deposit. On the 29th of April 2024, the Company announced that the environmental permit application had been submitted to the Finnish Regional State Administrative Agency. In May, Eurobattery Minerals also communicated that that the Company will apply for the battery mineral project Hautalampi to become a Strategic Project under the new EU Critical Raw Materials Act.

“We have just submitted the Environmental Permit Application to the Finnish Authorities and with that crucial step and this acquisition, we have taken one big stride closer to start the mining operations in Outokumpu. The pre-feasibility study showed that the economic outlook for the battery mineral mine in Finland is strong,” said Roberto García Martínez, CEO of Eurobattery Minerals.

Financial details of the stake acquisition
The Board of Directors of Eurobattery Minerals has informed the three founders and initial owners of FinnCobalt that the Company will exercise the third option of the investment and shareholder agreement entailing the option to acquire FinnCobalt in a staged process which was entered into on 11 May 2020 and which became effective on 27 May 2020. This means that Eurobattery Minerals, before 27 July 2024, should exercise said option by paying a total cash amount of EUR 300,000 and issuing shares in Eurobattery Minerals amounting to a value of EUR 1,000,002 to the three founders of FinnCobalt. These two actions will be taken parallelly and simultaneously. The cash part of the consideration will be paid from the Company’s cash. The share part of the consideration will be paid through a directed issue of shares. The subscription price in the directed share issue will correspond to the volume-weighted average price of the Company’s share on NGM Nordic SME during the ten trading days preceding the issue decision.

Effects of the acquisition

• Eurobattery Minerals will acquire 30 per cent of the shares in FinnCobalt. The Company’s stake in FinnCobalt will thereby increase from 70 per cent to 100 per cent of the capital and the votes.
• The stake acquisition of FinnCobalt is expected to be completed during the second quarter of 2024. FinnCobalt is expected to be consolidated into Eurobattery Minerals’ financial statements from the date of admission.
• As the owner of all shares in FinnCobalt, Eurobattery Minerals will have full control over the resolutions of the Board in FinnCobalt.
• Eurobattery Minerals will also have the right, but no obligation, to nominate the Chairman of the Board and two ordinary Board members and their personal deputy members in FinnCobalt.

The Hautalampi project in brief
The Hautalampi project is located near Outokumpu, Finland, in the same spot as the well-renowned Keretti mine where approximately 28.5 million tonnes of rock with a copper content of 3.8 per cent were mined between 1912–1989. The project consists of one mining concession covering 227 hectares with exposure towards nickel, cobalt, and copper, and a nearby reservation. The area benefits from well-developed surface and underground infrastructure as well as strong local support for mining. An estimated EUR 10–15 million had been invested in the project by previous owners before the project was assumed by Eurobattery Minerals in the spring of 2020. In June 2021 Eurobattery Minerals was able to increase the project’s measured, indicated, and inferred resource tonnage by approximately 100 per cent and the metal content by approximately 50 per cent. In October 2022, the Company was able to confirm a further increase in the metal content of approximately 40 per cent. On 20 March 2023, the Company published a preliminary feasibility study (PFS) for the Hautalampi project which highlighted the opportunities and potential challenges of advancing the development of the Hautalampi deposit. On the 29th of April 2024, the Company announced that the environmental permit application had been submitted to the Finnish Regional State Administrative Agency. In May, Eurobattery Minerals communicated that that the Company will apply for the battery mineral project Hautalampi to become a Strategic Project under the new EU Critical Raw Materials Act.

The project aims to create an opportunity for local carbon-zero production by harnessing solar energy. FinnCobalt Oy – part of Eurobattery Minerals – has offered a section of its mining area for solar energy production, while Okun Energia Oy will invest in the units and provide electricity for the mine through a Power Purchase Agreement (PPA). The connection will be "behind the meter," ensuring production directly for own use without taxes or electricity transmission fees.

"At Eurobattery Minerals, we are committed to responsible mining practices and contributing to a sustainable future," says Roberto García Martínez, CEO for Eurobattery Minerals. “This partnership with Okun Energia Oy marks a significant step towards achieving carbon-zero production of critical raw materials, aligning with our objectives to operate responsibly and support the green transition.”

Key factors of the MoU include the promotion of carbon-zero production of critical raw materials and the enhancement of the social license to operate. The objective is to provide a framework for long-term local cooperation activities that benefit both parties and also the local community. The Hautalampi battery mineral project is located at a historical mining site with strong local support for mining activities. The municipality has evolved from a mining town into an industrial centre, and there is widespread anticipation for the mine to open. The project is expected to create jobs on-site, and the community is working towards making this a reality. The local municipality in Outokumpu is giving its full support for the project.

“Solar is vital part of the green transition, essentially our role is to enforce and support Outokumpu’s sustainable development,” says Tero Mäntylä, CEO for Okun Energia Oy.

Eurobattery Minerals strives to conduct responsible and modern mining by utilizing state-of-the-art technology. The mining sector plays a strategic role in the transition towards a digitalized and decarbonized economy, aligning with EU Agenda 2030 and Fit for 55 objectives.

The signing of this MoU represents a significant event in our journey towards responsible mining practices and carbon-zero production. Eurobattery Minerals looks forward to working closely with Okun Energia Oy and the local community to bring this vision to fruition and to deliver responsibly mined minerals from Europe for Europe.

Eurobattery Minerals has announced its application for the Company´s Finnish Hautalampi project to become a Strategic Project under the new Critical Raw Materials Act (CRMA) recently approved by the European Union (EU). This initiative aims to contribute to the EU's objective of ensuring access to a secure, diversified, affordable, and sustainable supply of critical raw materials essential for strategic applications in various sectors, including the net-zero industry, digital industry, aerospace, and defence. This is an open call from the Directorate-General of the European Commission (DG GROW) to support strategic projects under CRMA and the initiative is intimately connected to the benchmarks set for the goals of EU 2030, for a sustainable Europe by that year.

The recognition of a project as a Strategic Project has several advantages, including streamlined and predictable permitting procedures and support in gaining access to finance.

“Eurobattery Minerals is committed to supporting the EU's efforts to secure the supply of critical raw materials. Our project aims to not only contribute to the EU's strategic goals but also to operate responsibly and sustainably, generating positive impacts for local communities and economies. This first open call to become a strategic project is a great opportunity for us, and also opens the door for future subventions under the umbrella of CRMA,” comments Roberto García Martínez, CEO of Eurobattery Minerals.

Background of the open call for Strategic Projects under CRMA
Under the CRMA, Strategic Projects are recognized as key instruments to enhance the security of the EU's supply of 17 strategic raw materials listed in Annex I of the Act. These materials include crucial elements such as cobalt, nickel, copper, tungsten, and other raw materials vital for modern technologies and industries. DG GROW aims to have a first set of strategic projects decided and published by the end of this year. The CRM Council meeting with the opening of the first call for proposals will take place after the entry into force of the CRMA regulation on May 23, as informed by DG GROW at the information day for potential applicants held on April 30. A timetable has been established for the Strategic Projects, highlighting the next steps:

• First cut-off date (August 2024)
• Completeness check (September 2024)
• Technical assessment (September 2024)
• CRM Board Meeting (November 2024)
• Commission decision for the list of Strategic Projects (December 2024).

There will be several assessment criteria for the strategic projects; need for the project to make a meaningful contribution to the security of the EU’s supply of critical raw materials, technical feasibility of the project and its sustainable implementation with a positive impact on the environment and societies. For projects in the EU, the benefits must be cross-border. During the assessment procedure, each application is evaluated by at least four individual experts who will assess four aspects: technical, financial, UNFC classification and ESG aspects.

Eurobattery Minerals´ initiatives for Hautalampi to become a strategic project
Eurobattery Minerals´ Hautalampi project aligns with the EU's objectives and aims to:

• Enhance the security of the EU's supply of critical raw materials, contributing to the benchmarks set for 2030
• Implement sustainable practices, including environmental impact monitoring and prevention, and socially responsible practices such as respect for human rights and labour rights
• Create cross-border benefits by involving undertakings from different EU Member States and potential off-takers located in multiple Member States

“Institutional support from the EU is important and if the permitting procedure becomes faster and more predictable for strategical projects, that would of course be great news for us. As might be expected, support in gaining access to finance and subventions would also be very positive, so we will put our best effort into this application process,” says Roberto García Martínez, CEO of Eurobattery Minerals.

Short about the Hautalampi battery mineral project
Our Finnish project has a pre-feasibility study from March 2023 and the Hautalampi ore reserves and minerals resources reserves have been classified in the highest categories as viable mining projects in the United Nations Framework Classification for Resources (UNFC). The Hautalampi mining permit (K7802) was registered in June 2023 and the Environmental Permit Application was submitted to the Finnish Authorities at the end of April 2024. More information about the Hautalampi project is available on our website: https://eurobatteryminerals.com/en/projects/hautalampi/.

The company will provide the environmental permit application to the Finnish Environmental Authority and following this, have a meeting with the agency in mid-April. After the April meeting, Eurobattery Minerals will follow the instructions and procedural steps indicated by the Finnish Authority.

“We are looking forward to submitting the environmental permit application and work alongside the authorities to ensure a smooth and quick process,” said Roberto García Martínez, CEO of Eurobattery Minerals.

The investor presentation covered, among other things, a status update regarding the progress of the battery mineral mine projects in Finnish Hautalampi and in Spanish Corcel. A selection of the information is summarised below.

In 2023, the Company has increased its stake in FinnCobalt Oy and the Hautalampi project to 70 per cent, and achieved several important milestones in the project, including the publication of a Preliminary Feasibility Study, the achievement of the highest UNFC classification as a viable mining project, the registration of the Hautalampi mining permit, and the submission and approval of an updated Environmental Impact Assessment. In 2024, the Company intends to accelerate the work in Hautalampi by finalising the acquisition of the project, applying for an environmental permit, as well as signing a non-binding offtake agreement and delivering a feasibility study.

In the Spanish Corcel project, the Company continues to await a positive decision from the Energy and Mining Authority of Galicia. Eurobattery has, as previously communicated through a press release on 30 August 2022, submitted all necessary information for environmental and operating permits and will resume the development of Corcel when possible. Since the European Parliament on 12 December 2023 voted in favour of a bill under the Critical Raw Materials Act (CRMA), which among other things entails that the permit process for a mine should be significantly speeded up and that at least 10 per cent of the EU’s annual consumption of strategic raw materials should be mined within the EU by 2030, the Company hopes that the permit process in Corcel will be made easier in the near future.

“I am very pleased to see that our battery mineral project in Finland is progressing. Along with finalising the environmental permit process in Q1 2024, the development of the concentration plant is vital in our work to supply responsible battery minerals from our Finnish mine and thus make Europe less dependent on conflict minerals”, said Roberto García Martínez, CEO of Eurobattery Minerals.

The concentrator for refinement will consist of a comminution circuit (crushing and grinding), copper flotation concentrate production, nickel-cobalt flotation concentrate production, sulphur removal and tailings handling. Hautalampi concentration plant is designed to produce annually 21,000 tonnes of Ni 7%/Co 1.9% concentrate and 5,000 tonnes of Cu 25% concentrate during the anticipated 12 years of mining at the site. The designed capacity of the plant is 500,000 tonnes per annum.

To get a visual update of the Hautalampi battery mineral project and the concentration plant, please take a look at the following video:

LINK TO HAUTALAMPI VIDEO

”With the approved environmental impact assessment, we are one major step closer to mining in Finland and to supplying responsibly mined battery minerals to the European industry. The approval also provides us good guidance towards the environmental permit application we are working on,” said Roberto García Martínez, CEO of Eurobattery Minerals.

According to the approved EIA, the project’s implementation, based on current information and assessment, is technically, socially, and environmentally feasible, taking mitigation measures into account. In connection with the ongoing work for the environmental permit application, several tasks will be carried out. These are ground surveys, characterizations, water management and detailed process planning.