Cinis Fertilizer adjusts production plans amid delays from Northvolt

In response to delays announced by Swedish electric vehicles battery developer and manufacturer Northvolt at its key production facility, Cinis Fertilizer has been forced to revise its own production schedules and financial forecasts for the upcoming years. Initially partnered in 2021 to enhance sustainability in the battery sector, Cinis aimed to utilize sodium sulfate—a residual product from Northvolt’s operations—for its fertilizer production. However, persistent setbacks have led Cinis to source this key material from international suppliers to maintain its 2024 production schedule.

The delays are projected to cost Cinis approximately 25 million Swedish krona ($2.36 million) in additional costs in 2024, derailing the company’s target of achieving an EBITDA margin of over 25 percent for the year. Despite these challenges, Cinis maintains its long-term financial and operational goals, including an optimistic outlook for achieving positive cash flow from its operational activities by summer 2024.

The continued delay in sodium sulfate deliveries has extended the timeline for Cinis’s Skellefteå facility commencement to 2028. The company is prompted to recalibrate its business strategy. This includes intensifying discussions and forming new partnerships within the global electric vehicle battery industry to support its strategic reorientation and ensure supply stability.

Cinis continues to pursue its operational targets, including the establishment of six production plants and achieving a total production capacity of 1.5 million tons of potassium sulfate by 2030.

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