Kainuu – Battery production and raw materials – all in one place
The mining industry has been a growth sector in Kainuu. Finland has a long history of mining activity, and Finnish metallurgical technology. Manufacturers of mining equipment are well known throughout the international mining community.
Kainuu therefore benefits from its long mining tradition, a highly developed infrastructure, an efficient operating environment, security of tenure and political stability, and strong technological expertise in machines and automation used in mining industry – all of these and more make Kainuu a favorable investment and operating environment for the exploration industry. Additionally, the Finnish government offers a complete package to support mining investments. Side flows surrounding the mines of Terrafame and Sotkamo Silver represent emerging opportunities.
Secure and sustainable supply of raw materials from Kainuu
Kainuu is a mining region. Kainuu is part of the Fennoscandian Shield, a physiographic region of extremely high ore potential. The potential can be roughly divided into three categories: the exploitation of industrial minerals, rock, and metallic minerals. The region is also rich in other soil materials needed in industry and construction, such as sand, gravel, rock suitable for crushing, and peat.
The extractive industry and the industries that serve it and mining activities are of great importance to the region’s employment and economy. We aim to sustainable mining along with increasing the number of operations and production, going hand in hand with research and development work and education, strengthening cooperation with the national and international networks.
The secure and sustainable supply of raw materials to the European industry and society is an important topic on the EU agenda. The new Critical Raw Materials Act (CRMA), effective from May 2024, aims to secure the sustainable supply of materials essential for Europe’s clean energy and digital transitions. It presents a significant opportunity for all sectoral stakeholders, particularly the regional ones where the mineral resources occur. CRMA’s main goal is to increase the domestic production of primary and secondary strategic minerals, with extraction covering at least 10% of the consumption and recycling/ reusing at least 25%. This ambitious target, while requiring a dramatic change in several policy instruments and the adoption of new ones, holds the promise of transforming regional ecosystems, such as the one in Kainuu, rich in critical and strategic raw materials.
Our main operators
The mining industry in Kainuu consists of four mines as well as a number of micro-enterprises that supply natural stone.
Terrafame Oy, a Kainuu based mining company that produces battery chemicals for the increasingly popular electric cars. Their battery chemicals have the lowest carbon footprint on the market. Their highly energy-efficient bioleaching method ensures a small carbon footprint. Their reliable deliveries are ensured by their nickel reserves, which are the largest in Europe, and the battery chemicals plant, which is one of the largest in the world. Terrafame is Europe’s largest Ni and Co mine, today producing 70% of all Ni mined in Europe. By 2030, Terrafame will alone cover over 10% of EU demand for battery grade Nickel and over 1% for battery grade Cobalt
Under the framework of EU’s Critical Raw Materials Act (CRMA), the Kolmisoppi ore deposit—part of Terrafame’s mining operations in Sotkamo—was granted Strategic Project status on March 2025 as one of the 47 Strategic Project in EU. On 18 June 2024, Terrafame has also started recovering natural uranium on its industrial site in Sotkamo. The uranium recovery plant has a planned annual capacity of 200 tons. In addition, Terrafame is cooperating with the Finnish energy company Fortum on recycling battery materials. Terrafame will use Fortum’s recycled metals to produce battery chemicals, effectively feeding them into new batteries. The process aims to create a closed-loop, circular battery value chain.
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with positive social and environmental benefits. Sotkamo Silver owns mineral deposits, which contain silver, gold and tungsten in Finland and Sweden as well as zinc and gold in Norway. The Company’s main project is the Silver Mine project in the municipality of Sotkamo, Kainuu. Sotkamo Silver production in Sotkamo started in 2019.
Elementis Minerals is a talc mine operating in Sotkamo, Kainuu. The mine has previously been known also as Mondo Minerals. In May 2025, IMI FABI has completed the acquisition of Elementis Talc, the industrial talc business of Elementis. The business in Sotkamo will continue to operate under its existing structure, ensuring uninterrupted service, supply, and support to customers. The Elementis brand will remain in use while integration activities progress.
Otanmäki Mine is a mining and exploration company that aims to be a future pioneer in circular economy in mining and critical minerals and metals producer in the EU-area. Otanmäki Mine intends to use the funds from its IPO to initiate its mining operations in Otanmäki and Vuorokas by the end of 2026. The main products of the mines will be vanadium pentoxide (V2O5), ilmenite, and iron pellets.
