Once interest had been generated and plots reserved, the next question was: how do we convert that interest into actual investments?

The GigaVaasa Impact Analysis, completed in early 2024, demonstrated the potential scale and significance of the battery cluster’s planned investments, both in the Vaasa region and across Finland. The impact model examined the investment and production phases under two different scenarios.

Depending on the scenario, the production phase was estimated to generate an overall impact of 5,200–10,400 jobs and EUR 3.7–7.8 billion in total generated output. The impact on the Vaasa region was estimated at 2,400–4,900 jobs and EUR 2.6–5.4 billion in total generated output.

The figures also demonstrated that GigaVaasa’s impact would extend well beyond the region itself: according to the impact model, a large proportion of the indirect impacts would arise elsewhere in Finland.

The analysis demonstrated the potential of investments. The next phase involved creating the practical conditions needed to turn that potential into actual investments.

The second project, Towards Investment through Innovation in the Responsible Battery Value Chain, shifted the focus from generating interest to creating the conditions needed to deliver investments. The project involved creating a customer management system that consolidated company- and project-specific information and enabled assessment of factors such as electricity supply capacity.

At the same time, transport links were developed: connections to the Port of Vaasa, the main road network and the national rail network were advanced in collaboration with municipalities, the Regional Council of Ostrobothnia and public authorities.

This created precisely the practical conditions that an emerging industry needs to support investment decisions. At the same time, the efforts to attract investment strengthened the operating conditions of existing industries.

A network, visibility and opportunities for international engagement were also created around the investments. Importantly, a single organisation did not carry out the work alone. The region’s cities and municipalities, development companies, public authorities, businesses and universities were all involved. This made the battery value chain part of the Vaasa region’s broader energy ecosystem.

Then the market changed

And this is where the story becomes interesting. Over the next seven years, another, harder lesson became clear: not everything could be resolved through regional development efforts.

Although the Vaasa region had the necessary foundations in place, the European battery market did not develop as expected. Investments were delayed or cancelled, while China’s position in the battery market grew stronger.

The Vaasa region could have carried out its original plan with few changes. Instead, it changed direction.

The question was no longer simply how to build the largest possible battery industry cluster in the Vaasa region. The question became: what would make the region competitive and able to attract future investments, even if a particular industry or technology changed?

This led to a reassessment of the GigaVaasa concept and narrative.

From batteries to broader energy-intensive industries

The third project, Battery Value Chain in a New Market Environment – Towards Profitable Growth, is currently underway and aims to enhance GigaVaasa’s competitiveness in the changed market environment. This work involves examining synergies within energy-intensive industries, potential new businesses in the region, logistics, the region’s service concept and communications. The project will continue until the end of 2027.

The battery value chain has become one element of a broader objective: strengthening the Vaasa region’s position as an investment location for clean, energy-intensive industries.

Over the course of this work, stakeholders’ understanding of the factors that make a region competitive in attracting investment became more refined. The availability and price of electricity, along with access to low-carbon energy, proved even more important than initially anticipated.

This also changed how stakeholders saw GigaVaasa’s future. Rather than focusing solely on the battery industry, attention began to shift towards clean, energy-intensive industries more broadly – sectors that require the same robust energy and infrastructure provision and industrial ecosystem.

This does not mean that the original focus was abandoned. On the contrary, the work on the battery value chain has given the region expertise, international networks, customer contacts and a model for creating the conditions for investment, all of which can now be applied more broadly.

What did we learn from this?

Perhaps the most important outcome is not, ultimately, a battery factory. The most important outcome is the ability to build and improve an industrial ecosystem.

Several years of work have brought the Vaasa region international business contacts, expertise in investment preparation, ready-to-develop sites and infrastructure, improved logistics, an effective collaborative network, and an understanding of the factors that shape international companies’ investment decisions.

The work has led to improvements in customer relationship management, communications and logistics, while also laying the foundations for future investment. At the same time, the stakeholders involved openly acknowledge that not all original timelines could be met because of investment delays.

This is perhaps the most important lesson of all:

Impact does not mean implementing the original plan exactly as intended. Impact also means recognising changes in the operating environment and using the expertise gained to chart a new course.

This is also at the heart of the ecosystem agreement.

A new industrial ecosystem cannot be built within the timeframe of a single project, organisation or term of government. It requires long-term collaboration between municipalities, businesses, universities, development companies and central government – and the ability to redirect efforts when the operating environment changes.

In the Vaasa region, the ecosystem agreement has enabled this work over several years. The first phase established the region’s position in the battery value chain, the second created the conditions for investment, and the third involves capitalising on the expertise gained to drive greater growth across clean technology and energy-intensive industries.

This means that the next step does not start from scratch. The Vaasa region will continue to build on the progress made over several years.

Developing the battery value chain in the Vaasa region