Cost of Sibanye lithium project in Finland rises 17% to $880M

South African miner Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW) has raised the projected cost of its Keliber lithium project in Finland by 17% to €783 million ($880 million), citing regulatory changes, expanded project scope and falling lithium prices.

The company, which holds a 79.8% stake in Keliber, said the revised figure covers development through to hot commissioning of the refinery. Capital spending on the project had reached €508 million ($572m) by the end of March 2025, and the 2025 budget has been increased to €300 million ($338m) from a previous forecast of €215 million ($242m).

Sibanye, which also mines gold and platinum group metals in South Africa and the United States, is pushing ahead with its diversification into battery metals. The company secured €500 million ($563m) in debt financing last year — partly from the European Investment Bank — to support the Keliber buildout.

Construction is “well advanced,” according to Sibanye, with the lithium refinery in the Kokkola Industrial Park on track to begin commissioning in the first quarter of 2026. Once operational, Keliber is expected to produce 15,000 tonnes of battery-grade lithium hydroxide annually over a 16-year mine life.

The project includes multiple mining areas, a concentrator at Päiväneva (Keliber concentrator), the Kokkola refinery, and supporting infrastructure across all locations.

Sibanye’s pivot to lithium has faced setbacks. In February, the company withdrew from the Rhyolite Ridge lithium-boron project in Nevada, US, citing low lithium prices.

The project had been promoted as key to strengthening American domestic supplies of key minerals and reduce reliance on China.  It is expected to produce 22,000 tonnes of lithium carbonate a year, enough to power roughly 370,000 electric vehicles annually.

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