EIT RawMaterials: Strategic Investment in Critical Materials
EIT RawMaterials has announced a second investment of €0.494m (US$515,746) in grant funding for Novana's Vanadium Recovery Project (VRP1) in Pori, Finland, building on an initial €0.5m (US$522,010) investment in September 2024 and increasing its minority shareholding to a total of 2.2%.
Strategic investment in critical materials
The investments aim to accelerate Novana's progress towards becoming Europe's first domestic producer of Vanadium Pentoxide (V2O5), a critical raw material used in high-strength steel and Vanadium Flow Batteries (VFBs).
This investment highlights EIT RawMaterials' growing role as an impact investor in raw material innovation and industrialisation in Europe.
Bernd Schäfer, CEO, Managing Director, EIT RawMaterials, says: "This second round of investment reflects our confidence in Novana's team and technology. This company is an outstanding example of our portfolio, where we foster innovative technologies and projects across the raw materials value chain with a strategic focus on securing Europe's raw material supply chains and industrial competitiveness.
"We are proud to support Novana's journey to become the first domestic European producer of high-purity vanadium, a vital resource for Europe's leading industries."
Driving sustainable innovation
EIT RawMaterials is driving Europe's evolution toward a sustainable, circular and digital future through its powerful network of industry partners.
At its core, the organisation strengthens Europe's raw materials sector by developing innovative solutions, reimagining education and providing strategic guidance to key stakeholders.
In direct support of the Critical Raw Materials Act, EIT RawMaterials concentrates its efforts on three strategic pillars: building circular material systems that maximise resource efficiency and minimise waste, ensuring reliable access to critical raw materials for European industries and creating cutting-edge materials solutions that meet tomorrow's challenges.
Through these focused initiatives, EIT RawMaterials is helping position Europe as a global leader in sustainable raw materials management and innovation.
Pioneering circular technology
Novana, a subsidiary of ASX-listed Neometals, has pioneered groundbreaking circular technology to produce high-purity vanadium pentoxide (V2O5) from steel slag, a byproduct of steelmaking, while consuming CO2 in the process.
VRP1 is projected to produce 9,000 tonnes of vanadium pentoxide annually, equal to more than 40% of current European annual demand.
This new investment will bring EIT RawMaterials' stake in Novana to 2.2%, with an option for up to €10m (US$10,441) in additional equity at a later stage based on project milestones.
Europe remains significantly import-dependent for vanadium, a designated critical raw material crucial for producing high-strength steel alloys and emerging technologies like Vanadium Flow Batteries (VFBs).
VRP1, with the help of this seed investment, is positioned to become Europe's first domestic producer of Vanadium Pentoxide (V2O5) and is projected to produce 9,000 tonnes annually, equal to more than 40% of current European annual demand.
Additionally, the project will eliminate up to 1.5 million tonnes of CO2 over the next decade, contributing to Europe's green transition.
Johanna Lamminen, CEO, Novana, adds: "This renewed investment from EIT RawMaterials is a significant boost to our project.
"It will accelerate our progress towards construction and, ultimately, the production of zero-carbon, high-purity vanadium in Europe. We deeply value their partnership and shared commitment to a circular economy for critical raw materials."
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