Finland’s planned graphite factory in Kokkola could become one of Europe’s most significant battery-material projects, with the Finnish startup Hycamite preparing a multi-stage investment that may eventually produce up to 200 kilotonnes of battery-grade graphite per year. According to Yle, that output could cover as much as 40 percent of Europe’s expected graphite needs for batteries, strengthening Finland’s role in the European clean-tech and critical raw materials supply chain.
Why graphite matters for electric vehicles and European industry
Graphite is a form of carbon and one of the essential materials used in lithium-ion batteries. In electric vehicles and energy storage systems, it is mainly used in the battery anode, the component that stores and releases lithium ions during charging and discharging.
This makes graphite a strategic material for the European battery industry. Without secure access to battery-grade graphite, Europe’s plans to expand electric vehicle production, reduce dependence on fossil fuels and build a stronger domestic battery value chain remain exposed to supply risks.
Graphite is also used beyond batteries. Industrial customers may include the steel, concrete, tyre and defence industries, as well as battery manufacturers. Its properties — high thermal resistance, electrical conductivity and chemical stability — make it useful in sectors that depend on durable and high-performance carbon materials.
Hycamite plans a staged graphite investment in Kokkola
The project is being developed by Hycamite, a startup based in Kokkola on Finland’s west coast. The company is already known for technology linked to hydrogen production and carbon materials. Its planned graphite factory would be built in phases rather than as a single large project.
The first step is a pilot plant estimated at €50 million, with construction expected to begin next year in the Kokkola large-scale industrial area, close to Hycamite’s existing hydrogen facility. A larger second phase could cost between €2 billion and €3 billion, according to chief executive Laura Rahikka, who told Yle that the company intends to build the facility gradually.
At full capacity, the factory would produce around 200 kilotonnes of graphite per year. If realised, the project would place Finland among the most important European locations for battery-grade graphite production.
Finland links graphite production to the EU critical raw materials strategy
The planned graphite factory also fits into the European Union’s effort to reduce dependence on external suppliers for critical raw materials. Graphite is considered crucial for batteries, clean technologies and industrial resilience.
Hycamite’s project has been connected to the EU’s list of strategic projects under the Critical Raw Materials Act. According to Rahikka, this means the large-scale plant must be located in Finland. Although Kokkola is the company’s preferred location, a final decision on the site has not yet been made.
The geopolitical context has also changed Hycamite’s strategy. The USA was initially expected to be the company’s main market, but Rahikka said the business environment there is currently too unstable. As a result, Hycamite has put its USA operations on hold and is focusing on Europe.
Kokkola is becoming a battery and metals hub
Kokkola already hosts several industrial projects linked to Europe’s battery and raw materials value chain. The area includes Jervois’ cobalt refinery, while Keliber’s lithium mine in Kaustinen and its refinery in Kokkola are part of Finland’s broader effort to strengthen domestic processing of battery minerals.
Rahikka also pointed to the possibility of future aluminium production in Kokkola, referring to Arctial’s planned large-scale aluminium project. If these investments advance, the city could become a more integrated industrial hub for European battery materials, metals processing and clean technology.
For Finland, the graphite project is not only an industrial investment. It is part of a wider European question: whether the EU can build enough capacity inside Europe to support the green transition while reducing strategic dependencies. The planned factory in Kokkola would not solve that challenge alone, but it could become one of the clearest Nordic contributions to Europe’s battery supply chain.
