Sibanye Stillwater, a major Johannesburg-based precious metals producer, has secured an additional €500 million ($557.30 million) in debt financing to complete its Keliber lithium project in Finland, the company announced on Thursday. The financing, partially provided by the European Investment Bank (EIB), will support the project’s transition to production by 2026.
Despite a significant slump in global lithium prices, Sibanye remains optimistic about the long-term demand for lithium, particularly as supply deficits are expected to drive future price increases. The Keliber project, in which the Finnish Minerals Group holds a minority stake, is projected to produce 15,000 metric tons of battery-grade lithium annually for at least 16 years, potentially supplying European electric vehicle manufacturers and gigafactories.
Sibanye plans to begin processing third-party spodumene supplies at Keliber in 2025, with production from its own mine commencing the following year. The latest financing package is intended to improve the company's liquidity, securing existing resources for ongoing operational needs. This move comes at a time when lithium prices have dropped by about 70% over the past year due to weaker-than-expected demand for electric vehicles, driven by high borrowing costs and global economic uncertainty.
