Sibanye Stillwater announced a formal request for European Union concessions to shield its Keliber lithium project from price volatility and unfair competition. The Keliber mine, the company’s first large‑scale lithium operation in Europe, is nearing completion and is positioned as a strategic asset for the EU battery value chain.
Construction of Keliber is on schedule, with cold commissioning slated for Q1 2026. Mining of lithium ore began in February 2026, and the concentrator is in hot commissioning. The project’s capital cost is estimated at €783 million, with a 20 % stake held by the Finnish Minerals Group and a €500 million green loan to support development. The EU has designated Keliber as a Strategic Project under the Critical Raw Materials Act, underscoring its importance to European critical‑minerals policy.
Lithium prices have fluctuated sharply, falling below $10,000 per tonne in the second half of 2025 and rising to about $24,000 per tonne in late 2025/early 2026. The volatility, coupled with competition from low‑cost Chinese refiners, has raised concerns that the project’s cost structure may not be fully covered by market prices. Sibanye’s request seeks price protection mechanisms such as a floor price, local‑content requirements, and risk‑sharing arrangements to mitigate these headwinds.
Management emphasized the need for EU support. "The staged ramp‑up we have agreed on with our strategic partner ensures that the Keliber lithium project advances responsibly, derisking the commissioning phase to ensure an optimal technical and commercial approach, balancing market realities with stakeholder interests. We have invested significant capital through the price cycle to complete the construction phase of the Keliber lithium project, ensuring this strategic asset is ready to deliver local supply into the EU battery value chain," said CEO Richard Stewart. "We want to know there is viability for this project. Sibanye did not want its shareholders to carry all the risk. This is the only integrated lithium project in Europe and is a strategic asset, he stressed, not just for Europe, but for the world." Mika Seitovirta, Chief European Advisor, added, "We are happy the door is open and the first steps are there." The green financing package provides cost effective funding to complete the development of the project.
Sibanye’s broader financial performance underscores the strategic importance of Keliber. In Q1 2025, the company reported an 89 % year‑on‑year increase in adjusted EBITDA to R4.1 billion ($222 million). For the full 2025 year, revenue reached R129.7 billion and adjusted EBITDA hit R37.8 billion, a 189 % jump, while net debt to adjusted EBITDA fell from 1.77× to 0.59×. These figures demonstrate a strong balance sheet, yet the Keliber project remains a significant capital commitment and a potential source of risk if market conditions do not improve.
The EU’s request for concessions could provide a price floor, local‑content incentives, and risk‑sharing mechanisms that would help secure the project’s financial viability. Without such support, the project may face financial strain amid volatile lithium prices and intense competition. The request reflects both the strategic value of the Keliber mine to the EU’s critical‑minerals strategy and the company’s need to mitigate exposure to market swings, positioning the project as a key element of Europe’s transition to a low‑carbon economy.
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