South Africa’s Sibanye Stillwater said on Monday it is seeking concessions from the European Union to shield Europe’s first large-scale lithium mining and processing venture from price volatility and unfair competition. The diversified miner is advancing its Keliber lithium project in Finland in phases as it manages risk in a volatile pricing environment for the battery metal. It began mining lithium ore at the Syväjärvi open-cast mine in February.
The company plans to commission a concentrator during the third quarter of 2026. This facility will produce spodumene concentrate at a rate of about 140,000 metric tons annually. A decision on commissioning a refinery to produce about 15,000 metric tons of battery-grade lithium hydroxide per year will come in the third quarter. That decision largely depends on ongoing talks with the EU, including on a floor price, Mika Seitovirta, Sibanye’s chief European adviser, told analysts.
EU Regulations and Price Protection Mechanisms
The EU enacted the Critical Raw Materials Act in 2024. The bloc strives to reduce dependence on Chinese-dominated strategic metal supplies amid a shift toward cleaner energy. The regulations seek to boost critical metal production within the EU through accelerated permitting, as well as access to public grants and private financing. Therefore, the Europe first lithium mine fits squarely within the EU’s strategic objectives.
“Could we have some price protection mechanism for unfair competition, for instance? That is, of course, something that we need to have,” Seitovirta said during Sibanye’s international capital markets presentation. “We need more when it comes to investment risks and also, when it comes to trade measures,” he added, citing U.S. tariffs and China’s metal export restrictions. His comments highlight the challenges facing the Europe first lithium mine as it seeks to compete with established producers.
CEO Richard Stewart said Sibanye wanted assurances that its refinery operations would be protected from factors including oversupply from China. “If there are games that get played in the market, help us protect what is a very strategic asset and not ask our shareholders to carry all of that risk,” he said. The company’s request for concessions reflects broader concerns about European industrial competitiveness.
Production Timeline and Investment Decisions
The Europe first lithium mine represents a significant milestone for the continent’s battery supply chain. Europe currently relies almost entirely on imported lithium for electric vehicle production. Domestic mining and refining would reduce that dependency and create local jobs. However, volatile lithium prices complicate investment decisions. Prices have swung dramatically in recent years as supply and demand dynamics shift.
Sibanye’s phased approach allows the company to limit initial capital expenditure. The concentrator requires less investment than the full refinery. Once concentrate production proves successful, the company can decide on the refinery. That decision hinges on securing EU concessions that reduce financial risk. Without such protections, shareholders may hesitate to commit additional capital.
The EU has signaled support for strategic projects like Keliber. However, the bloc has not yet committed to price floors or trade measures specifically for lithium. Negotiations between Sibanye and EU officials continue. A decision on the refinery is expected by the end of 2026. The Europe first lithium mine will proceed with concentrate production regardless of the refinery decision. But full integration from mine to battery-grade chemical remains the ultimate goal.
China dominates global lithium refining capacity. Chinese companies have invested heavily in mines and processing facilities worldwide. European producers cannot compete on cost alone. Therefore, the Europe first lithium mine requires policy support to survive. Sibanye’s request for concessions is reasonable given the strategic importance of lithium for Europe’s green transition. The coming months will reveal whether the EU agrees to provide that support.
