Simmons & Simmons has advised Terrafame on the successful financing of the company’s continued development of its battery chemicals plant and production of nickel sulphate.
Terrafame reduces the carbon footprint of transport by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric car batteries is located on Terrafame’s industrial site in Sotkamo, Finland. The plant is capable of producing nickel sulphate for around one million electric cars per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.
Simmons advised Terrafame on the $90m supply intermediation provided by an international bank, the proceeds of which will be used for working capital financing as well as on the renewal of a guarantee facility which backs Terrafame’s environmental bonding obligations. This plant is one of the world's largest production units for nickel sulphate used in electric vehicle batteries. The trade financing is part of Terrafame’s planned and significant action on increasing its working capital to support the expansion of its activities.
The Simmons team was led by energy, natural resources and infrastructure partner Andrew Petry, supported by associate Samuel Chapman.
Andrew Petry, energy, natural resources and infrastructure finance partner based in London commented “It was a great pleasure to work with the team at Terrafame on this important transaction which is one of a growing trend of financing transactions in the car battery production supply chain that we are seeing."
Iain Duncan, head of Simmons’ energy, natural resources and infrastructure team commented “We were delighted to have been instructed on this important financing for Terrafame and the electric vehicle sector. The company is going from strength to strength and is playing a key role in the electric vehicle revolution.”