Sweden hostsEurope's largest known stockpile of rare earth elements uncovered
The discovery of a significant rare earth oxides deposit in Sweden's far north, near Kiruna at the Per Geijer site, is expected to be a game-changer for Europe's rare earth supply chain. This deposit could potentially meet up to 18% of Europe's future rare earth oxide demand.
Swedish mining company LKAB is planning to build a new processing plant near Luleå, with commercial operations scheduled to begin by late 2029 or early 2030. This plant will convert mine waste and by-products into rare earth concentrates for use in high-tech industries.
Sweden's contribution, along with emerging sources in places like Norway's Fen complex, marks important steps towards a more secure and diversified European rare earth supply chain outside China. This is crucial as rare earth elements are essential for technologies including electric vehicles, wind turbines, smartphones, and defense applications.
The Swedish deposit leverages existing mining infrastructure and expertise in iron ore and polymetallic mining, allowing for relatively swift rare earth oxide production within the next decade. Despite being one of the EU's largest mining countries, this marks a shift towards high-value rare earth elements extraction as a key future focus.
In 2021, the European Commission reported that 98 percent of the rare earths used in the EU were imported from China. The exploration and development of indigenous sources and processing capabilities for critical minerals like rare earth oxides are therefore strategic initiatives for Europe.
LKAB's chief executive, Jan Mostrom, stated that the deposit could be a significant foundation for producing vital raw materials for the eco-friendly shift. He is optimistic about the deposit's impact, claiming that it will have a significant influence on reducing Europe's dependence on Chinese imports.
However, the exact influence of the exploration on reducing Europe's dependence on Chinese imports is challenging to precisely assess. The complete level of the deposit has yet to be established, and the mining of the new deposit will largely depend on how swiftly permits can be secured.
The European Union needs to expand its trade in the short-term, but in the future, cannot rely solely on trade agreements, according to Swedish Energy Minister Ebba Busch. The EU needs to develop indigenous sources and processing capabilities for critical minerals to safeguard from supply chain disruptions and geopolitical risks.
Last Updated: 13 January 2023
[1] European Commission (2021). Critical Raw Materials Action Plan 2.0. Available at: https://ec.europa.eu/growth/sectors/raw-materials/critical-raw-materials_en
[2] LKAB (2022). LKAB's New Rare Earths Project. Available at: https://www.lkab.com/en/newsroom/news/lkabs-new-rare-earths-project/
The discovery and development of the rare earth oxides deposit in Sweden's Per Geijer site could bolster Europe's environmental-science sector, particularly in the realm of technology, as it provides a potential foundation for producing raw materials essential for various high-tech industries, including electric vehicles, wind turbines, smartphones, and defense applications. This strategic initiative, aiming to reduce Europe's reliance on Chinese imports, is expected to contribute significantly to general-news regarding the continent's energy independence and supply chain diversification efforts.
