HELSINKI, April 29 (Xinhua) -- Chinese and Finnish companies broke ground Tuesday on Finland's first lithium-ion battery cathode active material (CAM) plant, a project aimed at boosting Europe's battery supply chain.

The plant, located in the southeastern coastal city of Kotka, will be operated by Easpring Finland New Materials Oy, a joint venture between Beijing Easpring Material Technology Co., Ltd. and Finnish Minerals Group.

Scheduled to begin operation in 2027, the plant is expected to manufacture CAMs essential for lithium-ion batteries for European and global battery manufacturers. It is designed for an annual production capacity of 60,000 tonnes - enough to supply cathodes for 500,000 to 800,000 electric vehicles, depending on battery size, according to Easpring Finland New Materials Oy.

The project involves an investment of around 800 million euros (about 911.40 million U.S. dollars) and is anticipated to create around 270 jobs in the initial production phase. Ramboll, a firm specializing in architecture, engineering, and consultancy, said the project is projected to generate more than 180 million euros in annual tax revenue and contribute nearly 400 million euros to Finland's GDP.

Speaking at the ceremony, Finnish Minister of Economic Affairs Wille Rydman emphasized the importance of the project's shift toward clean energy. He said that this facility will play a vital role in advancing sustainable energy, as the production of CAM is essential to the development of green solutions, from mobility to energy storage.

Chen Yanbin, chairman of Beijing Easpring Material Technology Co., Ltd., called the project a "milestone" in expanding battery material production in Europe. Matti Hietanen, CEO of Finnish Minerals Group, said the plant would strengthen Finland's battery value chain, support Europe's electrification goals, create thousands of new jobs, and boost local economic growth.

During the ceremony, representatives buried a cement bucket as a time capsule at the construction site of the plant. It contains today's local newspaper, Finnish and Chinese coins, project documents, and copies of speeches - a symbolic gesture to mark the project's long-term significance. (1 euro = 1.14 U.S. dollar)