INTERVIEW: Sibanye-Stillwater CEO ties Keliber lithium ramp-up to market conditions

Sibanye-Stillwater's Keliber lithium project in Finland has moved from construction into operational ramp-up, with mining underway at the Syväjärvi open-pit mine and key processing infrastructure now in place, CEO Richard Stewart said.

"Keliber has completed construction of its main infrastructure — the concentrator and refinery. Mining commenced at the Syväjärvi open-pit mine in February 2026, and ramp-up activities are underway," Stewart said in an emailed exchange with Platts, part of S&P Global Energy.

The project's concentrator is currently in the commissioning phase, while the lithium refinery at Kokkola has been constructed and is progressing through commissioning preparations, Stewart said.

"The project is now transitioning from construction into the operational ramp-up phase, with all key infrastructure in place," he added.

Keliber is expected to become Europe's first integrated lithium operation, producing lithium hydroxide from its own mined ore reserves. Owned by Sibanye-Stillwater (79.82%), Finnish Minerals Group (20%), and a small group of Finnish shareholders (0.18%), the project is expected to have a mine life of more than 18 years and an estimated annual production of 15,000 metric tons of battery-grade lithium hydroxide monohydrate.

Sibanye-Stillwater has previously said the project would be commissioned in stages, with mining and concentrate production ramping up before the refinery.

According to the company, the plan involves developing four opencast mines and three mechanized underground workings. Operations at Syväjärvi and Rapasaari will begin first, followed later by the Emmes, Outovesi and Länttä operations as the project progresses. These sites are spread across the municipalities of Kaustinen, Kokkola and Kronoby. Ore from the mines will be processed at the Päiväneva concentrator, located near Rapasaari. The concentrator is expected to produce approximately 200,000 mt of spodumene concentrate per year. This product will then be transported approximately 66 km to Keliber's lithium refinery in the Kokkola Industrial Park.

"The planned approach is a phased ramp-up," Stewart said. "Mining and concentrate production are expected to ramp up first, allowing the project to establish stable feed and operating performance. The refinery commissioning process is scheduled to follow, with the timing and pace of ramp-up dependent on operational readiness and market conditions."

Stewart said the sequencing is intended to reduce execution risk while retaining operational flexibility during a period of weak and volatile lithium pricing.

"This staged approach is designed to reduce execution risk, preserve flexibility and optimize value under different lithium market scenarios," he said.

After reaching multiyear highs on May 12, lithium prices have declined in recent months amid anticipated supply increases, primarily from Australian restarts and brownfield expansions, as well as robust inventory levels in China. Platts assessed CIF Europe battery-grade lithium hydroxide at $19,000/mt on July 20, down 14% from $22,000/mt on May 12.

According to Stewart, lithium market conditions remain uncertain, shaped by EV growth rates, battery energy storage demand, supply growth, inventory movements and broader economic conditions. He noted that the staged start-up gives Keliber the option to generate early cash flow from concentrate while delaying or pacing hydroxide output in line with customer demand and pricing.

"Concentrate production can provide optionality and early cash flow while decisions regarding the pace of refinery ramp-up can be aligned with lithium hydroxide pricing, customer demand and broader market conditions, including a supportive regulatory environment," Stewart said. "This flexible approach supports prudent capital allocation while preserving the project's long-term strategic value."

Stewart said total project capital expenditure is estimated at about Eur783 million, covering development of the mine, concentrator and lithium refinery. Most construction capital has already been invested, with remaining funding needs focused on commissioning, ramp-up and future development phases, including the Rapasaari mining area and related infrastructure, he added.

Keliber has been supported by shareholder funding from Sibanye-Stillwater and Finnish Minerals Group, as well as Eur500 million of external project financing. Looking ahead, Stewart said funding options could include operating cash flow, project finance facilities, working capital arrangements, customer-related financing structures and European or national critical minerals support mechanisms.

Market strategy and offtake discussions

Stewart said offtaker interest remains strong for both spodumene concentrate and lithium hydroxide.

"Interest in Keliber's products, both spodumene and lithium hydroxide, remains strong, supported by the strong demand outlook for lithium as increased electrification of world energy needs continue and supply deficits are forecast from the end of the decade," he said.

For spodumene concentrate, demand remains heavily concentrated in China, where most global refining capacity is located.

"We are engaging with a number of potential off-takers and interest is very positive," Stewart said.

Lithium hydroxide agreements are expected to take longer because battery customers require product qualification before entering long-term supply deals, he said.

"Lithium hydroxide requirements are very specific to each customer and a product qualification process, which could take up to 12 months, is required before a customer can enter into a long-term supply arrangement," Stewart said.

EU policy support and long-term outlook

Stewart welcomed EU efforts to strengthen domestic critical minerals supply through the Critical Raw Materials Act, but said Europe still needs more practical support mechanisms.

"Compared with the US, the EU is still at an earlier stage in translating policy intent into practical support mechanisms," he said.

The forthcoming Industrial Accelerator Act could provide more clarity on local content requirements for battery minerals, particularly lithium, Stewart said. He also identified protection against unfair competition and more flexible funding tools, including possible ramp-up support for strategic projects, as priorities.

While lithium markets may remain volatile in the medium term, Stewart said that the long-term demand outlook remains underpinned by EVs, battery storage and electrification.

"There is no shortage of new probable supply projects; however, steeper and sustained incentive prices are required for investments to materialize," Stewart said.

"In a de-globalizing world, resulting in riskier supply chains, Europe remains extremely short of feasible regional lithium projects," he said. "The project is strategically positioned to supply lithium into a market that is expected to require substantial new sources of responsibly produced material over the coming decade."