Berlin, 15 October 2024: EIT RawMaterials announced a €0.5 million seed investment in Finland-based Novana to support the development of an innovative Vanadium Recovery Project (VRP1) in Pori, Finland. Novana is a subsidiary of Neometals, which has pioneered groundbreaking circular technology to produce high-purity vanadium pentoxide (V2O5) from slag, a byproduct of steelmaking. The production also consumes CO2 as part of the process, significantly reducing the impacts in comparison to traditional mining and processing technologies.

This initial investment is designed to facilitate the project's growth by securing further funding. EIT RawMaterials is actively supporting Novana in raising an additional €400 million in equity and debt financing to complete the project.

Strategic Importance of Vanadium for Europe

Europe remains significantly import-dependent for vanadium, a designated Critical Raw Material crucial for producing high-strength steel alloys and emerging technologies like Vanadium Flow Batteries (VFBs). VRP1, with the help of this seed investment, is positioned to become Europe’s first domestic producer of Vanadium Pentoxide (V2O5) and is projected to produce 9,000 tonnes annually, equal to more than 40% of current European annual demand. Additionally, the project will eliminate up to 1.5 million tonnes of CO2 over the next decade, contributing to Europe’s green transition.

Seed Investment to Catalyze Further Growth

In addition to a €0.5 million seed investment, EIT RawMaterials is supporting Novana in securing the remaining financing needed to fully develop the project. The total €400 million required will be raised through a combination of debt and equity financing, with leading Nordic bank SEB and Aventum, a leading corporate finance boutique, managing the fundraising process. The European Investment Bank (EIB) has conditionally approved debt financing, recognising the project’s strategic importance for Europe’s resource independence.

EIT RawMaterials’ seed investment secures a 1.1% stake in Novana, with an option to invest up to an additional €10 million in equity at a later stage, contingent upon further milestones in the project’s development. The project has all key permits in place as well as a take-or-pay offtake agreement and well-advanced discussions regarding slag supply agreements positioning it at the forefront of Europe’s raw materials independence and green transition. This initial funding will be crucial in positioning the project to attract larger financial commitments from both private and public sectors.

EIT RawMaterials: Championing Circular Economy Innovation

This investment highlights EIT RawMaterials’ commitment to making strategic seed investments that catalyse further growth and innovation in Europe’s raw materials sector. Bernd Schäfer, CEO, Managing Director, EIT RawMaterials, stated: “This €0.5 million seed investment is designed to support Novana in laying the groundwork for further project growth. Novana is an outstanding example of how innovative technologies can unlock critical materials from waste, reduce Europe’s import dependency, and contribute to a truly circular and sustainable economy.”

Novana’s Vision as Europe’s First Domestic Vanadium Producer

Johanna Lamminen, CEO, Novana, added: “We are delighted to have executed a project agreement with EIT RawMaterials to support the development of our circular economy vanadium recovery project. With the co-operation, we are also looking forward to formally securing the funding for the project, after which we are ready to start construction. We hope to capitalise on the significant support from the Finnish State and the EU to deliver Europe’s first domestic producer of zero carbon high-purity vanadium, a critical material for the production of high-strength steel, aerospace titanium alloys and stationary energy storage batteries.”

Notes to the Editor

• Neometals: Vanadium Recovery Project Delivers Strong Feasibility Results
• Neometals: Vanadium Recovery Project - EU Supported Funding

Media Contact

Elisabeth Ippel - Communications Manager, EIT RawMaterials
elisabeth.ippel@eitrawmaterials.eu

About EIT RawMaterials

EIT RawMaterials is the largest and most active raw materials knowledge and innovation network, with more than 300 partner organisations spanning the entire raw materials value chain and promoting a circular economy. EIT RawMaterials is mandated to lead the European Raw Materials Alliance (ERMA), with over 750 members and an advanced project pipeline of more than 40 projects with a potential of over €25 billion in investments.

EIT RawMaterials (supported by the European Institute of Innovation and Technology, a body of the European Union) was established in 2015 to advance Europe’s transition into a sustainable economy, with a mission to secure a sustainable raw materials supply for Europe, close materials loops, and design product solutions to ultimately develop raw materials into a major strength for Europe by driving innovation, education, and entrepreneurship. Since 2016, EIT RawMaterials has deployed more than €600 million in strategic funding supporting over 600 projects and start-ups. These have raised a further €500 million from the market, resulting in cumulative direct funding exceeding €1 billion into projects and programmes across Europe.