Sibanye Stillwater has obtained an additional €500 million (US$557.3 million) in debt financing to advance its lithium mining project in Finland despite falling battery metal prices. The funding, partially provided by the European Investment Bank (EIB), is aimed at pushing the Keliber lithium project towards production by 2026. Spokesperson James Wellsted expressed confidence in future lithium price recoveries, anticipating market deficits. Although Sibanye hasn’t yet secured offtake agreements for the project, lithium production is expected to reach 15,000 metric tons annually for at least 16 years, benefiting European electrical vehicle manufacturers and gigafactories.

Sibanye Stillwater is a precious metals producer operating primarily in South Africa and the U.S., focusing on gold and platinum. The company is venturing into lithium mining due to the growing demand for this metal, particularly for electric vehicle batteries. The volatile lithium market has seen prices drop significantly due to lower global demand, notably influenced by economic factors like high borrowing costs. The Keliber project is poised to address the anticipated lithium supply shortages in the future.

Sibanye’s recent €500 million financing marks a strategic move to enhance its liquidity for the Keliber lithium project in Finland, amid challenging market conditions. The company’s leadership remains optimistic about future lithium price increases and intends to support the electric vehicle sector through substantial annual lithium production. Despite current market setbacks, Sibanye is positioning itself for recovery in the sector.

Original Source: africanminingmarket.com

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