Newsletter April and May 2024

Stockholm, 10 June 2024 – It has gone some time since you last heard from us in a monthly newsletter but here goes a packed issue with a summary from both April and May. Continue to read to see what we have been up to in this double issue!

Major step taken in Finland with the submission of the Environmental Permit Application for Hautalampi

On the 29th of April, Eurobattery Minerals could proudly announce that the Environmental Permit Application (EPA) for the battery mineral mine project Hautalampi in Finland had been submitted to the Finnish Regional State Administrative Agency.

It has been a long road and a lot of hard work but the submission of the EPA takes us one big step closer to the start of mining operations in Outokumpu.

After completing the submission, we are committed to closely monitoring the processing of the permit application and ensuring a successful outcome by collaborating with the relevant authorities. Our Finnish team is working with them to provide any necessary support and facilitate a smooth approval process.

Solar panels for carbon-zero production at the Hautalampi project

On the 15th of May, announced the signing of a Memorandum of Understanding (MoU) with Okun Energia Oy for the Hautalampi battery mineral project. Okun Energia is a prominent energy provider partly owned by the local municipality in Outokumpu, Finland. This MoU contains the terms for the development of local photovoltaic (PV) production to support carbon-zero production of critical raw materials, to support the green transition.

The agreement was signed by FinnCobalt Oy, our Finnish subsidiary, which has offered part of the mining area for solar energy production. Okun Energia will invest in the solar units and provide electricity for the mine through a Power Purchase Agreement. The connection will be "behind the meter," ensuring production directly for own use without taxes or electricity transmission fees.

Another objective with this agreement is to provide a framework for long-term local cooperation activities that benefit both parties and also the local community. The signing of this MoU represents a significant event in our journey towards responsible mining practices and carbon-zero production.

The subscription of warrants in serie TO4

As you know, Eurobattery Minerals carried out a rights issue of units in January 2024. It consisted of shares and warrants of series TO4 and TO5. The subscription period for TO4 was completed in May and a total of 12,776,891 warrants of series TO4 were used for subscription of shares in the company, corresponding to a subscription rate of approximately 38.4 per cent. It´s important to point out that members of the board and management – and one larger warrant holder – exercised warrants corresponding to SEK 2.3 million. This was a show of great commitment on part of the board and the management.

The company thereby received proceeds of approximately SEK 5.1 million before set-off of approximately SEK 1.0 million and issue costs. The issue proceeds are intended to be used to finalise the acquisition of FinnCobalt Oy as well as for continued work in the Finnish Hautalampi battery minerals project.

Commodity prices – June 2023 to June 2024

The Critical Raw Materials Act has now entered into force

The Critical Raw Materials Act (CRMA) from the European Union entered into force on the 23^rd of May 2024. This new regulation is important for the EU, the environment, and for Eurobattery Minerals.

The primary objective of CRMA is to ensure the secure supply of Critical Raw Materials (CRMs) in Europe. Driven by the Green Transition, global demand for these materials is surging. The EU's need for rare earth metals is projected to increase six-fold by 2030 and seven-fold by 2050. Demand for metals such as copper, nickel, cobalt, and tungsten is also expected to rise sharply. Copper, in particular, will be crucial due to its use in wind power, electric vehicles, solar power, and data centres for AI.

These metals and minerals are essential for Europe's economy and vital technologies across strategic sectors, including renewable energy, digital, space, and defence. However, they are prone to supply disruptions and could become leverage in geopolitical conflicts.

The EU's ambitious goals to decarbonize its economy under Agenda 2030 and the Fit for 55 Package make it urgent to shift away from fossil fuels. Mining plays a critical role in this transformation.

Application for Hautalampi to become a Strategic Project under CRMA

In May, we also announced the company will apply for the battery mineral project Hautalampi to become a Strategic Project under the new EU Critical Raw Materials Act. The Strategic Project 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.

The support of strategic projects under the CRMA is an open call from the Directorate-General of the European Commission (DG GROW). This is what our CEO, Roberto García Martínez, said about it:

“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”.

The first application round is ongoing and has a cut-off date in August 2024.

We wish you a nice and relaxing summer

Summer is around the corner and most people will be thinking about their well-deserved holidays. This will be the last newsletter before September 2024 but at Eurobattery Minerals we will continue to work on our projects in Finland and Spain and hopefully we will have more good news for you when you are back after the vacations.

We wish you all a relaxing summer and thank you for your continued support!