Financing the development of battery chemicals production

Image source: Terrafame, 2022

Macquarie’s Commodities and Global Markets group provides a $US90 million working capital facility to support the continued development and ramp-up of a client’s battery chemicals plant and production of battery-grade nickel and cobalt sulphate.

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Sector Commodities, Energy
Sub-sector Metals, Chemicals 
Location Finland


Historically, Terrafame Limited (Terrafame) has been a key global supplier of intermediate nickel and cobalt products into the battery supply chain, producing mixed sulphide precipitate from its processing facilities in Sotkamo, Finland. 

Having completed construction of its €250 million battery chemicals plant in 2021, Terrafame is now able to refine these intermediates – currently sold as raw material to metal refining companies – itself. This moves the company forward in the refining value chain and enables it to produce nickel and cobalt sulphates, the key ingredients used in electric vehicle batteries.


Macquarie provided a $US90 million facility via a four-year prepayment structure to support Terrafame’s working capital requirements to ramp up production at the new battery chemical plant. 

The solution met the constraints of Terrafame’s existing capital structure while allowing them to retain full control over the marketing of their product. Macquarie will also provide physical execution and logistics expertise to intermediate cargoes of nickel sulphate between Terrafame and its end buyers. 


With the plant holding one of the world’s largest production capacities for battery chemicals (sufficient to supply ~1 million electric vehicles per year), increased production allows Terrafame to provide a timely response to the rising demand for electric vehicles, particularly in the European market.

Importantly, Terrafame’s production output supports the global energy transition, while the newly integrated production process, by having both mining and processing facilities on one industrial site, creates a highly energy-efficient and fully traceable production chain that is unrivalled in the industry. As a result, Terrafame can produce battery chemicals with one of the smallest carbon footprints in the world. 

We are very pleased to have strengthened the relationship with this globally significant nickel producer and support them through their transition to the battery chemicals markets. We look forward to working with Terrafame in the future as they continue to ramp up and place their material with end-buyers.”

Rohan Westcott
Executive Director, Commodities and Global Markets