Valmet Automotive has announced a major ownership restructuring that elevates the Finnish state to majority ownership of the company. At the same time, its battery subsidiary Ioncor will be fully transferred to a Finnish-led investor consortium. The move is seen as part of Finland’s effort to strengthen industrial sovereignty and reduce reliance on Chinese ownership.
According to the Finnish Government, Chinese battery manufacturer CATL’s 20.6 percent stake in Valmet Automotive will be transferred to the state and domestic investment company Pontos. Following the transaction, the state will hold 79 percent and Pontos 21 percent of the company. “Valmet Automotive’s contract manufacturing expertise is nationally significant, and we want to ensure it remains in Finland,” said Minister of Economic Affairs Sakari Puisto in a government statement on September 2 (Finnish Government).
At the same time, Ioncor — one of Europe’s leading suppliers of vehicle battery systems — will move entirely under Finnish ownership. Finnish Minerals Group (FMG) will hold 70 percent of the company, while pension insurer Varma will take 16 percent and Pontos 14 percent. Ioncor reported revenues of around €1.5 billion in 2024. “Ioncor complements our strategy to build a responsible battery value chain in Finland,” FMG CEO Jani Kiuru said in the company’s release (Finnish Minerals Group).
The transaction involves financing of approximately €120 million, including €35 million for Valmet Automotive and €20 million for Ioncor. According to Valmet Automotive, the capital injection is intended to support expansion beyond passenger vehicle manufacturing, with a particular focus on contract manufacturing for the defense industry (Valmet Automotive).
The state’s strengthened role as majority owner is viewed as a strategic step to safeguard domestic industry and reinforce national security of supply. Valmet Automotive added that the new ownership structure will also improve its ability to expand into new industrial sectors and enhance its position in international markets.
The restructuring may also pave the way for a future stock exchange listing. Valmet Automotive previously prepared an Initial Public Offering on Nasdaq Helsinki in 2022, but the plan was withdrawn due to weak market sentiment at the time. With a stronger domestic ownership base and renewed capital support, listing ambitions could resurface when market conditions are more favorable.
