Finland said on Sunday it will become the majority owner of domestic supplier and contract manufacturer Valmet Automotive, with state-run Finnish Minerals Group (FMG) also set to take a 70% stake in the firm’s battery subsidiary Ioncor, citing the country’s “changed geopolitical situation.”
Valmet Automotive said the move was part of efforts to safeguard industrial know-how for broader use, including in defence. “In the changed geopolitical situation, Valmet Automotive’s special expertise in industrial serial production will strongly benefit the whole of Finland,” the company said in a statement.
The Finnish state and Pontos Group acquired 20.6% of Valmet Automotive from China’s CATL, while Finnish Industry Investment (Tesi) transferred its existing holding directly to the state. After the transactions, the government will own 79% of Valmet, with Pontos holding 21%. Both parties will also inject around €37.5 million in fresh capital.
Ioncor, which was spun off in 2024, will see its shares transferred from Valmet Automotive to the state, pension insurer Varma and Pontos. Once finalised, FMG will hold 70%, Varma 16% and Pontos 14%, supported by a further €20 million state investment. Ioncor will continue focusing on battery system assembly.
Valmet Automotive CEO Pasi Rannus said the shift marked a turning point for the company. “We are taking a completely new step in Valmet Automotive’s sixty-year history, as we are expanding the company’s business beyond car manufacturing,” he said. “Our expertise in industrial serial production, unique in Finnish conditions, creates a strong foundation for this expansion.”
FMG said the Ioncor acquisition aligned with its strategy to build a domestic battery value chain. “Ioncor fits perfectly with our special mission and strategy, as battery engineering and battery system manufacturing are an essential addition to our portfolio downstream in the domestic battery value chain,” said CEO Matti Hietanen.
The move has implications for customers such as Porsche, which had planned to source battery packs for its upcoming 718 sports car from Valmet’s Kirchardt plant in Germany. Automobilwoche reported last week that Porsche terminated its contract with Valmet, though a link to the nationalisation was not confirmed. The launch of Porsche’s electric Cayman and Boxster models has been delayed until 2027.
Separately, FMG is pressing ahead with an €800 million cathode materials plant in Kotka with Chinese partner Beijing Easpring, with production due to begin in 2027.
