Berlin, 15 October 2024: EIT RawMaterials has announced a €0.5 million seed investment in Novana, a Finland-based subsidiary of Neometals, to advance the Vanadium Recovery Project (VRP1) in Pori, Finland. Novana utilizes innovative circular technology to produce high-purity vanadium pentoxide (V2O5) from steelmaking slag, while also consuming CO2, thus reducing environmental impact compared to traditional methods.
This initial funding aims to spur the project’s growth by securing additional financing. EIT RawMaterials is assisting Novana in raising €400 million in equity and debt to fully develop the project.
Strategic Importance of Vanadium for Europe
Europe heavily relies on imports for vanadium, a critical raw material essential for high-strength steel alloys and emerging technologies like Vanadium Flow Batteries (VFBs). With this seed investment, VRP1 is set to become Europe’s first domestic producer of Vanadium Pentoxide (V2O5), expected to produce 9,000 tonnes annually, covering over 40% of Europe’s current demand. The project will also cut up to 1.5 million tonnes of CO2 over the next decade, aiding Europe’s green transition.
Catalyzing Further Growth
Beyond the €0.5 million seed investment, EIT RawMaterials is helping Novana secure the remaining €400 million needed for the project’s completion. This will be achieved through a mix of debt and equity financing, managed by SEB and Aventum. The European Investment Bank (EIB) has conditionally approved debt financing, recognizing the project’s strategic importance for Europe’s resource independence.
EIT RawMaterials’ investment grants them a 1.1% stake in Novana, with an option to invest an additional €10 million in equity later, contingent on project milestones. With all key permits, a take-or-pay offtake agreement, and advanced slag supply discussions in place, the project is well-positioned to attract significant financial commitments from both private and public sectors.
Championing Circular Economy Innovation
This investment underscores EIT RawMaterials’ dedication to fostering growth and innovation in Europe’s raw materials sector. Bernd Schäfer, CEO of EIT RawMaterials, stated: “This €0.5 million seed investment is intended to support Novana in laying the groundwork for further project growth. Novana exemplifies how innovative technologies can unlock critical materials from waste, reduce Europe’s import dependency, and contribute to a circular and sustainable economy.”
Novana’s Vision as Europe’s First Domestic Vanadium Producer
Johanna Lamminen, CEO of Novana, expressed: “We are thrilled to have partnered with EIT RawMaterials to advance our circular economy vanadium recovery project. We look forward to securing the necessary funding and commencing construction, with strong support from the Finnish State and the EU, to become Europe’s first domestic producer of zero-carbon high-purity vanadium, essential for high-strength steel, aerospace titanium alloys, and stationary energy storage batteries.”
