European rare earth find Sweden
Swedish mining company LKAB has claimed to have found the largest deposit of rare earth metals in Europe – a development that is potentially big news for electronics manufacturers.
LKAB announced last week that Europe’s largest deposit of rare earth metals had been located in the Kiruna area in northern Sweden.
Rare earth metals are widely used in a range of consumer electronics products from mobile phones, electric vehicles, chips, solar panels and LCD screens.
Rare earth metals
For example, Apple announced in September 2019 that they reached a deal with an unnamed supplier to reuse recycled rare earths in their iPhones.
There are 17 rare earths, including lithium (used in batteries), gallium (used as a silicon replacement material), indium (used in LCD screens and solar panels) and selenium (used in photocopiers, photocells, light meters, solar cells, etc).
These metals are known as “hitchhiker metals” because they are only available as by-products from the mining of major industrial metals such as aluminium, copper and zinc. This means that it is difficult to increase the production of these when certain industries are facing shortages.
Currently, China dominates the rare earth market, accounting for 60 percent of global production, according to the US Geological Service.
The European Union receives 98 percent of its minerals from China, according to the European Commission.
At the same time, the US has restricted key silicon chips, IP and manufacturing equipment from Chinese manufacturers. But Beijing has hinted through its state-controlled media that it may limit sales of rare earths to the United States.
The US is therefore taking steps to reduce its dependence on China for the minerals and is trying to strengthen its domestic supply chain.
In 2021, the Biden administration targeted rare earths, among other domestic supply chain priorities, to reduce its vulnerability to geopolitical tensions.
Swedish deposit
Swedish mining company LKAB said that after successful exploration, it has discovered “rare earth mineral resources exceeding one million tons of rare earth metals and the largest known deposit of its kind in Europe.”
– This is good news, not only for LKAB, the region and the Swedish people, but also for Europe and the climate, says Jan Moström, president and CEO of LKAB.
“This is the largest known deposit of rare earth metals in our part of the world, and it can become an important building block for producing the critical raw materials that are absolutely crucial to enable the green transition,” says Moström. “We are facing a supply problem. Without mines, there can be no electric vehicles.”
Currently, no rare earths are mined in Europe, but demand is expected to increase dramatically as a result of electrification, which will lead to a global undersupply.
Along with the increasing geopolitical tensions with China, the discovery in Sweden will be welcome news.
– Electrification, the EU’s self-sufficiency and independence from Russia and China starts in the mine, says Sweden’s Minister of Energy, Business and Industry Ebba Busch.
“We need to strengthen industrial value chains in Europe and create real opportunities for the electrification of our communities,” Busch said. “Politics must give the industry the conditions to switch to green and fossil-free production. The Swedish mining industry has a lot to offer here. The need for minerals to carry out the transition is great.”
LKAB warned that the road to possible mining of the deposit is long, but the plan is to be able to submit an application for an exploitation concession in 2023.