KIRUNA (Sweden): Large deposits of valuable rare earth metals – which are needed, among other things, for the construction of electric cars and wind turbines – have been discovered in northern Sweden.
Swedish mining company LKAB announced on Thursday that more than 1 million tons of rare earth oxides were found near Kiruna, which would make it the largest known deposit of its kind in Europe.
The deposits could provide a significant boost for the production of important raw materials that are crucial for the transition to renewable energy, explained LKAB boss Jan Moström.
Moström said it is difficult to estimate how large the deposits are compared to others outside Europe.
LKAB operates the world’s largest underground iron ore mine in Kiruna. The ore mining means that parts of the country’s northernmost town will have to move several kilometres away – about 6,000 residents will be relocated, which is one third of its population.
The world’s rare earth market is currently dominated by China. There is no mining of rare earth elements in Europe as of yet. European countries therefore depend on imports for the production of e-cars and wind turbines.
Rare earths are also found in consumer goods such as smartphones, laptops and televisions.
In Kiruna, a representative of the German automotive supplier Schaeffler emphasised the importance of raw material extraction in Europe.
Schaeffler plans to produce many millions of electric motors, said Florian Schupp, the purchasing manager responsible for the car business. For this, it needs rare earths.
Today, Schaeffler buys outside Europe, but the goal is to increasingly cover the demand in Europe.
According to LKAB, the road to possible mining of the metals is long however, in particular due to the necessary licensing procedures.
It could take at least 10 to 15 years before mining can actually begin and raw materials can be brought to the market.
This spring, the European Commission will propose measures to strengthen Europe’s capacity to source its own critical raw materials, meaning that projects such as the one in Sweden could receive EU support.
One argument for this is that without this autonomy there can be no environmental and digital transition.
Moreover, a Commission report from 2020 said the EU was sourcing 98% of its rare earth needs from China at the time.
This means that Europe would have a huge problem if China were to cut back or even stop supply for political or strategic reasons, hindering its autonomy.
Lastly, rare earth demand is likely to continue to rise sharply in the wake of electrification.
“Demand for rare earths used in permanent magnets, for example for electric vehicles, digital technologies or wind generators, could increase tenfold by 2050,” said the Commission paper.
Keyword: Swedish firm claims discovery of Europe's largest rare earth deposit