The EU is looking for sources other than China for these important minerals, but it will be at least a decade before Sweden is available to industry.
Sweden’s state mining company says it has identified more than 1 million tonnes of rare earth minerals in the northern Kiruna area.
LKAB said on Thursday that the deposit found next to its iron ore mine is the largest rare earth oxide in Europe.
Rare earth minerals are vital to the manufacture of many high-tech goods. They are used in electric vehicles, wind turbines, wearable electronics, microphones and speakers.
Jan Mostrom, CEO of LKAB, told Al Jazeera that finding the deposit was “quite significant”.
“One thing is that we can identify fairly large deposits of this material here within the European Union, and these materials will be critical for electrification,” he said.
A view of the iron mine of the Swedish state-owned mining company LKAB in Kiruna [Jonas Ekstromer/ TT News Agency via AFP]
Rare earth elements are not currently mined in Europe. Most are from China, and demand is expected to increase as the industry transitions to renewable energy.
When asked if the discovery has the potential to replace China as the leading supplier of rare earth metals to Europe, Mostrom said these are “early stages.”
“Given the quantities we have today, it could provide the significant amount of material needed in Europe – not nearly self-sufficient, but it’s an important first step,” he said.
EU strategy
Sweden is seen as a crucial part of the European Union’s strategy for critical mineral self-sufficiency.
“Electrification, EU self-sufficiency and independence from Russia and China will start at the mine,” said Ebba Busch, Sweden’s Minister of Energy, Economy and Industry.
LKAB plans to apply for a mining concession this year, but added that it would take at least 10 to 15 years before it could start mining the deposit and shipping it to markets.
Approving new mines in Sweden is a lengthy process that takes into account the risk to water resources and biodiversity.