Mining company LKAB, owned by the Swedish state, announced a major discovery of rare earths near a mining town in northern Sweden.

The news was announced during the EU Commission’s visit to the town of Kiruna in connection with Sweden’s EU presidency.

The find could help increase the EU’s independence on such materials from China and strengthen the green transition, says Swedish Minister of Energy, Business and Industry Ebba Busch.

She notes that the EU is heavily dependent on China for procuring rare earths used in manufacturing electric vehicles, among other things.

”Europe can’t depend so much on a single nation. We’ve already seen what happened with our dependence on Russian gas. And we are faced with a similar reliance on China when it comes to rare earths. Today 90% of all rare earths we depend on are produced or refined in China. Also, 60% of all lithium comes from China. This is untenable. EU must increase its independence,” notes Busch.

She puts the raw materials in a geopolitical context, which involves intensifying competition with Russia and China following Russia’s invasion of Ukraine. 

The discovery marks the biggest of its kind in Europe, and will have a great significance for all of Europe, say President and Chief Executive Officer of LKAB Jan Moström.

”This is crucial to the transition from combustion engines to electric vehicles,” remarks Moström, though he notes that it will likely take years before recovery of the rare earths reaches an industrial scale.

”This process could take ten to 15 years – from permit to extraction. That’s why it’s important to speed things up,” says Moström.

In connection with the presentation of the find, he gave the Swedish minister an hourglass to depict how much is left for Sweden to meet the next climate target.

”If we are pursuing a green transition, we must speed up the permit process,” says Moström.

Getting there, however, is not so simple. The discovery occurred close to the site of LKAB’s existing mining operations, which involve extraction of iron ore. But the snow-clad landscape north of the Arctic Circle is also one of the last unspoiled wilderness areas in the EU and is also home to one of Sweden’s minorities, the Samis. 

But the Swedish minister dismisses the notion that sacrificing a natural area will be needed to ensure the green transition, though she makes it clear that the permit is virtually guaranteed.

”Sweden has demonstrated that it’s possible to recover raw materials and at the same time protect nature. We also have a huge responsibility for our minority in Sweden, and I believe in dialog. But we’re also faced with at situation where we have to protect our planet. And if we are to achieve our ambitious climate targets, there’s no other way forward.”

(Note: Citations translated from Danish)

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