Europe’s battery supply chain depends not only on lithium and graphite but also on manganese, nickel and cobalt, which are essential components of battery chemistry and require mining, chemical processing, customer qualification and stable market conditions.
Projects and operations across Europe demonstrate the complexity of developing battery-material businesses, where strategic importance does not automatically translate into commercial profitability.
Euro Manganese Advances Chvaletice Battery Manganese Project
Euro Manganese’s Chvaletice project in the Czech Republic represents a distinctive battery-material development based on the reprocessing of historic mine tailings. The project is designed to produce high-purity electrolytic manganese metal (HPEMM) and high-purity manganese sulphate monohydrate (HPMSM) for battery applications.
The project’s 2026 preliminary economic assessment (PEA) reported a post-tax NPV8% of US$492 million, a post-tax IRR of 13.8%, annual nominal production capacity of 150,000 tonnes per year of HPMSM, and an estimated 26-year operating life. Initial Phase I capital expenditure is estimated at US$627.5 million, while planned Phase II expansion capital is estimated at US$197.8 million.
The project’s location within the European Union, use of legacy waste material, traceability characteristics and planned battery-grade production provide strategic relevance. However, advancing toward construction requires further development steps, including final feasibility work, offtake agreements, customer qualification, permits, land access and a financing package covering the required capital investment.
Terrafame Provides European Battery Chemical Operating Example
Terrafame’s nickel and cobalt sulphate operations in Finland provide an example of existing European battery chemical production. The company produces nickel sulphate and cobalt sulphate for battery markets, with capacity according to Finnish Minerals Group sufficient to supply nickel sulphate requirements for approximately 1 million electric vehicles and cobalt sulphate requirements for approximately 300,000 electric vehicles.
Despite its strategic role in the battery supply chain, Terrafame has faced market pressure. Reuters reported that the company began workforce negotiations in 2024 as slower electric vehicle demand and weaker battery-chemical prices affected operating conditions. The situation highlights the cyclical nature of battery-material markets. Demand trends, changes in cathode chemistry, Chinese production capacity, nickel prices, cobalt prices and customer inventory levels can all influence profitability.
BASF Highlights Permitting Risks in Battery Materials
BASF’s Harjavalta precursor cathode active materials project in Finland demonstrates the regulatory challenges affecting battery chemical developments. The company began change negotiations at the Finnish facility after a temporary permit issue delayed the project’s operating timeline.
The development illustrates that permitting remains a key factor even for large industrial companies involved in advanced battery-material production.
Battery Chemical Projects Require Commercial Execution
The development of manganese, nickel and cobalt chemical capacity depends on more than strategic importance. Successful projects require production scale, strict product specifications, customer agreements, competitive energy costs, regulatory approvals and the ability to withstand commodity-market cycles.
Euro Manganese is developing a circular-economy-based manganese project but must still secure financing for a large-scale development. Terrafame demonstrates that European battery chemical production is possible while also showing exposure to market volatility. BASF’s Harjavalta project highlights the impact of permitting uncertainty on industrial battery-material investments. Europe’s demand for manganese, nickel and cobalt chemicals continues to support supply-chain development, but market value will depend on companies’ ability to produce these materials consistently and profitably.
