A&O Shearman advises on EUR514.4 million financing for landmark Easpring Finland cathode active material plant

The borrower, Easpring Finland New Materials Oy, is jointly owned by subsidiaries of Beijing Easpring Material Technology Co., Ltd., one of the world's leading battery material producers, and Finnish Minerals Group Oy, a company wholly owned by the State of Finland. A minority stake of 1.7% is held by LG Energy Solution, Ltd.

The project marks a pivotal moment for Europe’s battery ambitions. As the continent moves to secure its own supply of cathode active material, an essential battery component currently dominated by producers in Asia, this plant represents a landmark step towards a domestic European CAM supply chain, supporting the drive to electrify road transport and expand battery energy storage. Once fully operational, the facility will produce 60,000 tons of cathode active material per year—enough to equip approximately 750,000 electric vehicles.

The project received a Business Finland investment grant of up to EUR115.4m under the EU Temporary Crisis and Transition Framework. The main facilities are structured as green loans in accordance with the LMA Green Loan Principles.

The A&O Shearman team was led by London-based Energy, Natural Resources, and Infrastructure partner Lorraine Bayliss and counsel Megan Chen-Schlote, with support from senior associate Chinedu Ihenetu-Geoffrey, associates Kyra Chong and Kavya Nankani, and trainees Kevin Hogan and Vivek Bilous. Hong Kong law advice was provided by Hong Kong-based partner Roger Lui with support from associate Kate Mao; specialist sanctions advice was provided by London-based partner Matthew Townsend and associate Ming He Tan; and specialist environmental advice was provided by counsel Tom d’Ardenne and associate Ming Zee Tee.