Sweden’s state-owned mining company LKAB has said it has discovered Europe’s largest deposit of rare earth metals. The discovery bolsters the continent’s ambition to rely less on imported raw materials needed for the green transition. The deposit, called Per Geijer, is located north of the Arctic Circle in the Kiruna area of northern Sweden, in the province of Lapland, and contains more than 1mn tonne of rare earth oxides, the largest known deposit of its kind in Europe, according to the company. Rare earth deposits are, contrary to their name, reasonably standard. Still, the extraction of the minerals is the most challenging part because of complex processing and intensive environmental effects.
It would take 10 to 15 years before the raw materials could be delivered to the market, but if permitting processes at a Swedish and EU level could be accelerated, this could be cut by upwards of 50 per cent. The company plans to apply for an exploitation concession this year. More than 80 per cent of the world’s rare earth processing capacity is in China, and the EU predicts that demand for the metals used in electric car motors and wind turbines will increase fivefold by 2030. The mining company’s announcement came as European commissioners visited Kiruna in the opening days of Sweden’s six-month rotating EU presidency.
The EU has put the drive for greater self-sufficiency in raw materials at the top of its agenda as it seeks to curb its reliance on China and Russia and shore up its ambitions to boost homegrown green technologies, including wind power and car batteries. The European Commission is working on plans to lower regulatory barriers to mining and producing critical materials such as lithium, cobalt and graphite, needed for wind farms, solar panels and electric vehicles. However, some member states need clarification about how far the EU can go towards lowering its reliance on imported raw and refined materials, given the regulatory obstacles, stressing the need to stick with a free-trade agenda aimed at unlocking deals with mineral-rich continents such as South America. The resulting rush of investments has turned the region into a boom as companies such as Northvolt, Facebook, and H2 Green Steel have moved there.
This discovery is at a perfect timing. We need to go more towards green or at least greener energy and something like this helps a lot.
ReplyDeleteI had no idea that 80% of the world's rare earth processing capacity is in China! This is not good. One country controlling so much is never good.
ReplyDeleteEspecially when that country is China. Or Russia. Or (insert other country lead by a dictator).
DeleteEU needs to address this very quickly so that that 10-15 year timeframe for delivering the raw materials to market is reduced to 5-7 years.
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