Neometals’ Vanadium Recovery Project (VRP1) in Pori, Finland, has secured a conditional grant of €48.7m ($56.56m) from Business Finland. 

The grant, which will support the development of the project, is contingent upon the company securing the remaining equity and debt financing needed for VRP1. 

Neometals holds an 86.1% interest in Recycling Industries Scandinavia (RISAB), which is the sole owner of Novana, the entity responsible for developing VRP1.  

Previously, the company announced that the VRP1 feasibility study demonstrated the potential for vanadium pentoxide (V₂O₅) production at lowest-quartile operating costs, alongside a low-to-negative carbon footprint. 

Novana is currently engaged in a project financing selection process, with a goal of raising approximately €400m in total financing.  

Nordic bank Skandinaviska Enskilda Banken is managing the debt component, while EIT RawMaterials is managing the equity package.  

The conditional grant from Business Finland is expected to decrease the equity financing required for the project. 

Novana holds the exclusive licence to Neometals’ VRP technology within the Nordic region as well as a non-exclusive licence for areas outside the region.  

Novana is required to pay Neometals a 2.5% royalty on gross revenues from all products and sales generated through the use of this technology. 

The project benefits from a long-term lease over the proposed VRP1 plant site, a secured environmental permit and a binding offtake agreement for 100% of VRP1’s V₂O₅ products with Glencore International.  

Neometals has stated that it does not intend to provide any additional material funding to RISAB or Novana for the development of VRP1 and expects its current ownership stake to be diluted to a minority equity position. 

Neometals managing director Chris Reed said: “We would like to congratulate the Novana team and thank Business Finland and the Finnish Government for their ongoing support of the project.  

“Vanadium is on the critical minerals list in the EU, USA and Australia and this grant plays a significant role in reducing the equity required to fund the project, which aims to produce vanadium with a zero-carbon footprint in the Nordics from an industrial sidestream.”