Finland industry watch: A business snapshot from the world’s happiest country

Finland spearheads Europe’s push into high-performance computing

The Finland-led LUMI consortium of six European nations has been selected to host one of Europe’s first AI factories. The existing LUMI supercomputer in Kajaani will be upgraded to support AI-related research and innovation. By 2027, the supercomputer will be replaced by a new AI-optimized machine for academic and commercial use.

This development comes as Finland’s Ministry of Education and Culture has committed to investing EUR 10 million per year until 2028 in an AI and machine learning hub. It will be part of the European Laboratory for Learning and Intelligent Systems (ELLIS), which has established a new Finnish site coordinated by Aalto University. The foundation of Silo AI’s CEO Peter Sarlin will donate EUR 10 million towards AI professorships.

Finland is also positioning itself as a leader in green energy AI. The Director of AI Finland, Karoliina Partanen, has highlighted the country’s abundant clean energy, cold climate and robust electricity distribution network as key advantages in this area. LUT University in Eastern Finland is already actively researching sustainable AI.

Beyond AI developments, Finnish sports technology company SportIQ has partnered with SPALDING to integrate its patented smart basketball technology into future product lines. The aim is to develop a data-driven, gamified experience for players at all levels.

In mixed-use technology, three Finnish companies – Kelluu, Winse Power and Elfys – have been selected to join NATO’s Diana innovation accelerator program. Competition was fierce, with over 2,600 applications received and just 70 companies making the cut.

Public and private sector boost for health tech innovation

Finland’s Ministry of Social Affairs and Health has launched an initiative to connect companies, research institutions and wellbeing services counties. The aim is to enhance the use of health data and improve services in social and healthcare. 

Meanwhile, the EU-funded UltraSense project is developing a health monitoring wearable in Finland. Integrating AI with stretchable materials, the device is designed to address challenges with obesity. The project includes the University of Oulu, Finnish wearables company Polar Electro, and Finland’s VTT research centre.

VTT is also coordinating the PhotonMed project to accelerate the adoption of photonics-based medical devices. With 39 partners across nine countries, the EUR 32 million initiative is testing 16 pilot cases using technologies such as light sources and microfluidics.

Nokia has launched a research collaboration with Germany’s Fraunhofer Heinrich Hertz Institute and Charité Berlin to explore wireless sensor technologies for medical applications. The project will focus on using Extremely High Frequency (EHF) radio waves for remote monitoring of vital signs.

In another cross-border development, Helsinki University Hospital (HUS) and Finnish med-tech company HealthFOX Oy are collaborating with SIA Bernu, a children and youth mental health facility in Latvia. The initiative will make HUS’s online mental-health resources available to Latvians. 

Sustainable development on the rise across Finnish heavy industry

Finland published a national mineral strategy that aims to promote sustainable growth in the mining industry. With the world shifting toward electrification and demand for battery materials rising, Finland stands out as the EU’s only producer of cobalt and the by far the leading producer of nickel. The country also has significant lithium reserves.

The Circular Economy Outlook for the Nordics found Finnish listed companies outperforming their neighbors in circular strategies, with the potential for sustained competitive advantage going forward.

Finnish metals and mining giant Metso has opened a Direct Reduce Iron (DRI) furnace facility, testing industrial-scale applications of this energy efficient alternative for smelting. Norway’s Blastr Green Steel is also advancing its plans for ultra-low CO2 steel production in Finland. The company has formed several key partnerships to prepare its value chain.

In the sustainable forestry sector, Logset’s hybrid harvesters are gaining traction for their fuel efficiency and power advantages. To meet rising demand – particularly from Germany – the company is refining production and expanding its workforce.

Finland sets the standard for recycling, re-use and energy efficiency 

VTT has developed a new hyperspectral imaging technology with the potential to revolutionize quality control and sorting across industries with fast moving production lines.

Battery recycling is also advancing in Finland. Researchers at Aalto University have developed a method that can increase the lithium recovery rate of EV batteries by up to 72%. This allows EV batteries to be discharged before transportation to a recycling facility, reducing the risk of fire. 

Finland is fostering biomaterials innovation too. LAB University of Applied Sciences and LUT University will establish a biomaterials competence center in Eastern Finland. The aim is to accelerate the commercialization of new technologies for global markets.

Bio-based CO2 is increasingly being repurposed as a valuable raw material for producing synthetic fuels. This development is drawing large investors to Finnish forest industry towns, which have an abundance of the resource. Norsk-e-Fuel is planning an aviation fuel facility in Imatra and Metsä Group is kicking off a carbon capture pilot project in Rauma.

Hitachi Energy is investing nearly EUR 200 million in a new Finnish plant for manufacturing transformers, which are crucial for integrating renewable energy sources into the grid. The plant will double the company’s production capacity and reinforce the Vaasa clean energy cluster on Finland’s west coast.