Terrafame | Closer cooperation with Rauanheimo

The growing popularity of electric cars and increasing demand for battery chemicals impose new requirements for Terrafame´s logistics chain.

Terrafame is a Finnish battery chemicals company that also produces zinc and copper. The company’s production plants are located in Sotkamo. Over the past decade, the operations of the integrated mine and metals production plant have been expanded significantly as the company has transformed from a mining company to a company that produces speciality chemicals. The growing popularity of electric cars has created significant demand for battery chemicals – nickel and cobalt sulphates – whose production will increase the company’s business and turnover. In the future, only a fifth of Terrafame’s workforce and funds will be allocated to mining operations as the production of chemicals will play an increasingly important role. Demand for battery chemicals is predicted to be high in Asia, Europe and America, and efficient transport solutions for both raw materials and end products are vital for Terrafame’s operations. Rauanheimo has been the company’s logistics partner from the very beginning.

“Rauanheimo is familiar with the handling of mined products from planning to forwarding, which makes it easier for us to manage our raw material and product flows, says Janne Palosaari, Terrafame’s Chief Commercial Officer. “A financially stable company is able to offer us a wide range of services – including ones that require new investments.”

In the beginning, the logistics cooperation focused on the Port of Kokkola, where Rauanheimo is a significant player. Today, Rauanheimo also operates at many other ports. The flow of raw materials and products into and out of ports is developed continuously also together with VR Transpoint.

Together with Rauanheimo, we are building a logistics chain where products are loaded into shipping containers already here in Sotkamo, says Palosaari. “With these arrangements, we are able to eliminate the need to handle battery chemicals in the intermediate stages of the logistics chain and ensure the high quality of the products.

Demand for tens of millions of batteries

Consumer demand is growing and the batteries of vehicles are becoming more advanced – people want to go further with a single charge. This can be done by increasing the share of nickel in the cathode active material acting as the core of the battery. Batteries and battery materials have earlier been produced mostly in Asia, where many global companies operate. However, European battery production has also seen significant investments in recent years. Terrafame has enough capacity to produce battery chemicals for the batteries of about one million electric cars annually, which leaves plenty of room for other businesses. Terrafame and Rauanheimo have developed innovative battery chemicals logistics solutions, which can be duplicated and scaled up.

“We are not jealous of our practices and partners. Instead, we want to be part of laying the foundation for a production cluster for battery chemicals and batteries in Europe, Palosaari says. For example, Finnish Minerals Group is seeking strategic partners for the development of a Finnish battery value chain.”

The smallest carbon footprint in the world

Terrafame provides its customers with responsibly produced battery chemicals that have a transparent and traceable supply chain. What is unique about Terrafame’s process is that the mining of battery minerals and the production of battery chemicals happen in the same industrial park. Terrafame’s ore deposits allow it to continue its mining and metal production operations for up to 50–60 years. The ore deposits are estimated to last for the next 30 years, which makes it possible to create long-term plans for the business. Occupational safety and environmental security are what is most important. The carbon footprint of nickel sulphate produced in Sotkamo is more than 60% smaller than the industry average.

“Terrafame’s nickel production has the smallest carbon footprint in the world, says Palosaari. This, combined with the unique integrated and traceable production process and operating fully under EU law, is a big deal – there is no one else who is able to offer such a combination.”


Terrafame is a Finnish battery chemicals company that also produces zinc and copper. The company’s production plants are located in Sotkamo.

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