Battery metals and chemicals producer Terrafame expects a boost in the company’s net sales due to higher production of battery chemicals in late 2021.
Joni Lukkaroinen, chief executive officer at Terrafame, indicated in the company’s interim earnings statement on Thursday, that the new battery chemical plant was completed by the company just in time to benefit from the jump in electric vehicle (EV) production and sales globally. The company is now ramping up production at this plant to lift its sales in the latter half of the year.
Lukkaroinen, citing Rho Motion, noted that around five million EVs were sold globally so far in 2021 and that the demand for EV batteries is estimated to increase by 47pc this year compared to 2020.
Nickel, zinc production down in H1
The Finnish miner and battery chemicals maker’s nickel production decreased by 9pc to 14,064mt in H1 2021 against 15,462mt in the same period last year, while zinc output reduced by around 15pc to 25,574mt from 29,929mt due to scheduled maintenance and downtimes during this timeframe.
In Q2 2021, nickel output fell by 4.5pc to 6,778mt from 7,100mt in the same quarter last year, while zinc production in the same period witnessed a steeper fall, declining by 7.1pc to 13,362mt from 14,387mt.
Still, higher prices for the two base metals during the period resulted in higher revenue with net sales rising by 7.2pc in H1 2021 to €185mn ($219.89mn) against €172,6mn in January-June 2020. In Q2 2021, net sales increased by 19.7pc to €91.6mn from €76.5mn in Q2 2020.