Sibanye Stillwater, the Johannesburg-based diversified mining and metals group, has revised the capital expenditure forecast for its Keliber lithium project in western Finland, raising the total estimated cost by 17% to €783 million (approximately US$880 million). The company attributes the increase to enhanced regulatory requirements and modifications in the project’s scope, which have impacted both infrastructure and operational planning.
As outlined in its latest operational update, the capital estimate covers the development and construction phase up to the “hot commissioning” of the lithium refinery, which remains on track for the first quarter of 2026. Sibanye Stillwater (SSWJ.J), which holds a 79.8% equity stake in the Keliber project, has stated that €508 million had already been expended on the venture by the end of March 2025.
The firm has also adjusted its 2025 capital expenditure projection for the project, increasing it from the previously announced €215 million to €300 million. The project’s overall cost escalation comes at a time of heightened scrutiny from Finnish and European Union regulatory bodies, reflecting the complex compliance landscape for strategic mineral initiatives on the continent.
The Keliber initiative is a cornerstone of Europe’s ambition to establish a domestic supply of lithium, a critical raw material in the production of batteries for electric vehicles and energy storage systems. With a planned annual output of 15,000 metric tonnes of battery-grade lithium hydroxide monohydrate, the mine is expected to operate for at least 16 years, securing a pivotal role in reducing reliance on imports from outside the European Economic Area.
In a financing move announced in August 2024, Sibanye confirmed that it had secured €500 million in debt funding for the project, a significant portion of which was underwritten by the European Investment Bank, underscoring the strategic importance of lithium for the EU’s energy transition objectives.
Construction activities at the site are reported to be “well advanced,” and the company remains confident about adhering to the production timeline, with commercial operations expected to begin in 2026. The Keliber project represents Sibanye Stillwater’s broader diversification strategy, aimed at repositioning the company beyond traditional gold and platinum group metals (PGMs) towards materials critical to clean energy technologies.
Traditionally focused on precious metals, particularly PGMs that are essential in catalytic converters to reduce vehicular emissions, Sibanye has made substantial inroads into the battery materials sector. This strategic evolution aligns with the global imperative to decarbonise and transition to more sustainable energy systems.
The Keliber development not only enhances Sibanye’s geographical footprint but also contributes to Europe’s resilience in securing critical raw materials. In an era marked by supply chain vulnerabilities and resource nationalism, projects such as Keliber are increasingly central to national and regional strategic autonomy in energy and industrial policy.
