VISION: Finland with a circular battery ecosystem, and Finland as the leading supplier of green specialty steel, and other metals in Europe (e.g., for automotive and aviation)
“Finland is potentially the only European country with the opportunity to establish a sustainable circular battery ecosystem for European Markets.”
—Markku Kivistö, Head of Industry, Cleantech, Business Finland
The iron and steel industry alone cause 7% of global GHG emissions. In travel and transport, electrification is the most significant lever to reduce emissions as the usage phase is responsible for 70%-90% of emissions. For EV’s, existing battery manufacturing accounts for up to 50% of an EV’s lifetime footprint.
Global steel market is >€1 trillion, with growing demand for decarbonization driven by carbon border taxes and emission trading. The EU battery market is estimated to reach €25 billion by 2030. The total export potential for green steel and green batteries is estimated to be between €27 billion and €29 billion by 2035. The green alternatives are estimated to grow at a 15%-20% CAGR until 2035 (vs. conventional only 3%-4%).
In the steel industry, green steel produced using an electric arc furnace (EAF) and green hydrogen-based direct reduced iron (DRI) can reduce CO2 emissions from steel production by up to 100%, representing a carbon handprint of ~1.9 kg CO2 per kg of steel produced. Similarly, a medium-sized EV, powered by a sustainable battery produced in the Nordics, has an estimated handprint of ~38,000 kg CO2 over the car’s lifecycle compared to a conventional gasoline car.
Finland has comprehensive mineral reserves, access to increasing renewable electricity, and bio-based raw materials (e.g., lignin) to leverage in alternative battery materials and technology.
The Moonshot brings together players to enable green metal and circular battery production (leveraging green hydrogen), building on the existing Responsible Mining network.