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Finland vanadium plant could open door to European market

A JV between Critical Metals and ASX-listed Neometals has chosen a site in Finland to build its new vanadium recovery plant which it expects to supply around 5% of the global market from 2025.
Finland vanadium plant could open door to European market Finland vanadium plant could open door to European market Finland vanadium plant could open door to European market Finland vanadium plant could open door to European market Finland vanadium plant could open door to European market

A proposed vanadium recovery plant located in Finland is hoping to supply 5% of the global market by 2025

 
 The plant  will process 200,00 tonnes of  steel slag from Scandinavian steel giant SSAB, with which the JV has recently signed a 10-year, 2 million tonne supply agreement. It is scheduled to start up in 2024.
 
The plant, which will be located in Pori on Finland's west coast, will have a capital cost of US$159 million and a pre-tax NPV of $139 million, with an internal rate of return of 24% and payback of less than five years, a recently scoping study indicated. 
 
Neometals is funding the first phase of the project's feasibility study until an investment decision is made, Chris Reed, managing director at Neometals said at a press conference. 
 
Vanadium is included in the EU Commission's list of critical raw materials due to concerns around supply.
 
The price of ferrovanadium rose during 2020 - peaking at over US$30/kg in mid-February - thanks to Chinese appetite for vanadium, which is used in for steel production, but has since fallen back to US$24.45/kg. 
 
Neometals is Critical Metals' largest shareholder with a 15.4% holding in the Scandinavia-focused mining company, which is also rolling out the region's first commercial lithium ion battery recycling facility. 
 
Neometals share price rose  over 7% to AU$ 0.22c on Thursday, valuing the company at $122.78 million.