Leading global law firm Herbert Smith Freehills Kramer has advised Easpring Finland New Materials Oy (EFNM), a joint venture owned by Beijing Easpring Material Technology (70%), Finnish Minerals Group (28.3%) and LG Energy Solutions (1.7%), on the development and financing of a cathode active material (CAM) manufacturing plant in Kotka, in the south of Finland.
The securing of the €514.4 million green debt financing package (which is being provided by six commercial banks, with support from export credit agencies Finnvera and Sinosure) marks a major milestone for the project.
The project is of significant strategic importance to Finland and the European battery value chain more generally. Once its first planned production phase is completed, the plant will produce c.60,000 tonnes of CAM per annum, making it one of the largest CAM production plants in Europe. The CAM product will be used to manufacture battery cells for electric vehicles and energy storage applications, supplying manufacturers across Europe and Asia including leading battery cell manufacturers LG Energy Solution and SK on.
The Herbert Smith Freehills Kramer team was led by London-based partner Helen Beatty, supported by senior associates Thomas Papworth and Joana Bourouphael and associate Sarah-Anne Butler. A team in Hong Kong led by partners Ellen Mao and Hilary Lau and supported by of counsel Charles Wong and associate Olivia Kong, together with partner Calvin Ho in Beijing, provided support on the Hong Kong and PRC law aspects of the transaction.
Partner Helen Beatty commented: “We are delighted to have advised EFNM on this highly significant project. The transaction reflects broader geopolitical and market trends, including efforts to strengthen supply chain resilience and industrial competitiveness in Europe, alongside growing investment by leading international battery manufacturers in European midstream projects through partnerships with local industry participants. It also highlights the important role of Chinese technology and expertise in the European battery value chain.“
