Sibanye Stillwater announced on Friday that the estimated cost of its Keliber lithium project in Finland has risen by 17% to €783 million ($880 million), largely due to expanded regulatory requirements and alterations in the project’s scope. The increased budget reflects the mining company’s commitment to pushing forward with the development despite rising costs.
The Johannesburg-headquartered firm, which holds a 79.8% stake in the Keliber project, expects the site to yield around 15,000 metric tonnes of battery-grade lithium annually over a projected 16-year lifespan, with production targeted to begin in 2026.
In an operational update, Sibanye stated: “Revised total capital for the development or construction stage of the project to the hot commissioning stage of the refinery … has increased by 116 million euros to 783 million euros.” By the end of March 2025, the company had already invested €508 million in the venture.
Additionally, Sibanye revised its 2025 capital expenditure forecast for the project upwards to €300 million, from a previous estimate of €215 million. Despite the cost hike, the company affirmed that construction is “well advanced,” with the refinery’s commissioning still scheduled for the first quarter of 2026.
Last August, Sibanye secured €500 million in debt financing to help fund the project, with part of the funding coming from the European Investment Bank. The financing is intended to support the final push toward bringing the project into production.
Traditionally a miner of gold and platinum group metals used in vehicle emissions control systems, Sibanye has expanded into the lithium sector as part of a broader strategy to align with global clean energy goals. Lithium is a vital component in batteries for electric vehicles and renewable energy storage, making the Keliber project central to the company’s diversification drive in response to the transition toward greener technologies.