Eurobattery Minerals applies for strategic EU funding for Hautalampi project

In May of this year, the company announced in a press release that it intended to submit an application to have Hautalampi recognized as a strategic project under the CRMA. The CRMA was approved in record time, as the EC aims to strengthen the bloc’s strategic autonomy by reducing its dependence on external suppliers of critical raw materials (CRM). These materials are essential for the production of batteries, renewable energy technologies and other various high-tech applications.

The Hautalampi nickel-cobalt-copper project has been in development for several years and significant progress has been made in resource estimation, environmental management and community engagement. Our commitment to minimizing our environmental footprint is confirmed by our plan to focus on responsible mining practices and cutting-edge processing techniques that will make a real contribution to the EU

circular economy regulations in CRMA. For example, Eurobattery Minerals has signed a Memorandum of Understanding with a local energy company to develop photovoltaic energy to support the production of zero carbon CRM. The project also complies with the EU’s stringent environmental, social and governance (ESG) criteria and the continued sustainability of CRM mining. All this while maintaining evidence that such growth is being undertaken in a sustainable, responsible manner, with the interests of the local community at the forefront.

Roberto García-Martínez, CEO of Eurobattery Minerals, comments: “Achieving strategic project status for our Hautalampi project would be a significant milestone that would advance our contribution to the EU’s ambitions for a secure, resilient and sustainable supply chain for key raw materials. With increasing demand for nickel, cobalt and copper – key elements in energy storage, electric vehicles and renewable energy technologies – our project is strategically positioned to support the green transition and reduce the EU’s strategic dependencies on external sources.”

The importance of Hautalampi for the EU

The Hautalampi Battery Minerals Project is of key importance to the EU’s strategic interests. It has the potential to become a significant source of nickel, cobalt and copper, which are considered strategic raw materials listed in Annex I of the CRMA. It will support Europe’s efforts to achieve self-sufficiency and reduce dependence on non-EU sources, particularly in the context of the green and digital transformation, thus supporting the CRMA objective that the EU should not be dependent on any single third country for more than 65% of its imports of any strategic raw material.

The project implementation is based on sustainable resource management practices and has gained support from private investors and government agencies such as the Finnish Innovation Financing Agency (TEKES) and the Centres for Economic Development, Transport and the Environment (ELY).

Finally, the Hautalampi battery mineral mining project is located 345 km from Helsinki, in the well-known Outokumpu Mining Camp Area. This is an excellent location for the development of the mine, as there is strong local support for mining and the municipality is ideally situated for the growing EV battery production market in northern Europe. This strategic location will facilitate the seamless supply of processed materials to key industries throughout Europe, particularly in the renewable energy and electric mobility sectors.

About the Hautlampi Battery Mineral Extraction Project

The Hautalampi project is located in the same region as the renowned Keretti mine, where approximately 28.5 million tons of copper ore were mined between 1912 and 1989. The project consists of a single mining concession covering 277 hectares with exposure to cobalt, nickel and copper. There is a solid technical basis for processing and producing commercial Co-Ni concentrate and Cu concentrate.

Target operating data, as it appears in the March 2023 feasibility study, indicates that Eurobattery Minerals will produce around 500,000 tonnes of ore per year, with an expected mine life of +12 years. Total capital expenditure is estimated at EUR 65 million, with a payback period of 4.6 years. The mining project is expected to have a concentrate production of Cu-conc. 25% of 5,000 tonnes per year and Ni/Co-conc. Ni 7%/Co 1.9% of 21,000 tonnes per year.

The Finnish project has a pre-feasibility study since March 2023, and the Hautalampi ore reserves and mineral resource reserves have been classified in the highest categories as viable mining projects in the United Nations Framework Classification of Resources (UNFC). The Hautalampi mining permit (K7802) was registered in June 2023, and an application for an environmental permit was submitted to the Finnish authorities in late April 2024.

Critical Raw Materials Act – A Brief Introduction

The Critical Raw Materials Act (CRMA) came into force on 23 May 2024, establishing a framework for securing and sustainably supplying critical raw materials across the EU. The CRMA introduces clear timelines for EU mining project permitting procedures, enables the designation of strategic projects and mandates comprehensive supply chain risk assessments.

The Act highlights the importance of critical raw materials for the EU’s green and digital transformation, as well as the resilience of its defence and aerospace sectors. At the end of May 2024, a call for strategic projects was launched under the CRMA, which aims to increase the EU’s capacity to extract, process and recycle these materials while diversifying supply sources.

Our Hautalampi battery minerals project fits perfectly with the CRMA objectives and represents a significant step towards ensuring long-term security of supply of critical raw materials for the EU. We look forward to the opportunity to contribute to Europe’s strategic goals and play a key role in the continent’s sustainable industrial future.

Throughout the CRMA application and adoption process, global strategic public affairs consultancy Kreab Worldwide acted as advisor to Eurobattery Minerals.

About Eurobattery Minerals

Eurobattery Minerals AB is a Swedish mining company listed on the Swedish Nordic Growth Market (BAT) and the German Börse Stuttgart (EBM). With a vision to make Europe self-sufficient in responsibly mined battery minerals, the company focuses on developing numerous nickel-cobalt-copper projects in Europe to supply key raw materials and, as such, power a cleaner world.

For more information, visit www.eurobaterynerals.com. You can also follow us on LinkedIn and Twitter.

Communication

Roberto García Martínez – General Manager

E-mail: [email protected]

Contact Investor Relations

E-mail: [email protected]

Mentor

Augment Partners AB is a mentor to Eurobattery Minerals AB

Phone: +46 (0) 86 042 255

Email address: [email protected]