Europe is taking decisive steps to develop its rare-earths resources, aiming to strengthen strategic autonomy and reduce reliance on imports, particularly from China. Two Nordic mining firms—Rare Earths Norway and Sweden’s LKAB—illustrate contrasting but complementary approaches to unlocking the continent’s critical-mineral potential.
EU Push for Mineral Sovereignty
Under its upcoming RESourceEU initiative, the European Union plans to secure access to domestic sources of critical raw materials. The 27-nation bloc aims to increase investment in strategic projects, targeting extraction, processing, and recycling within Europe while limiting dependence on any single external supplier to 65%. The EU hopes to extract 10%, process 40%, and recycle 25% of its annual raw-material consumption.
Alf Reistad, CEO of Rare Earths Norway, emphasizes the urgency: “There’s a clear sense that we need to act now. We have always said we are too early until we are too late.” Last year, the company revealed the Fen Carbonatite Complex in Ulefoss, southern Norway—the largest known rare-earths deposit in Europe. Estimates suggest it contains 8.8 million metric tons of total rare earth oxides (TREOs), including 1.5 million tons of high-value magnet metals such as neodymium and praseodymium, critical for EVs, wind turbines, robotics, and defense technologies.
Rare Earths Norway: The ‘Invisible Mine’
Rare Earths Norway plans to minimize environmental and social impacts through an innovative “invisible mine” concept. By drilling narrow diagonal tunnels beneath Ulefoss and backfilling extracted areas with waste, the company aims to preserve the town above, home to roughly 300 properties. Early surveys indicate strong local support, although concerns about stability and waste management remain.
The firm is advocating for fast-track permitting and price guarantees from EU authorities to ensure competitiveness against global players, particularly China and the U.S., which are advancing rapidly in rare-earths production.
LKAB: Sweden’s Urban Relocation Approach
In contrast, LKAB, a Swedish state-owned mining company, is focusing on iron ore while also exploring rare-earths in the Arctic’s Per Geijer deposit. The company is relocating thousands of residents from Kiruna to expand mining operations—a project already gaining global attention for moving historic buildings, including a 113-year-old wooden church. While the rare-earths discovery is secondary to the iron ore expansion, LKAB is consulting European policymakers to secure economic viability for developing its resources.
Strategic Implications for Europe
Analysts highlight the broader importance of these initiatives. Anthony Heron of the Arctic Institute notes that projects like Fen and Arctic deposits are pivotal for Europe’s “mineral sovereignty” agenda. Successfully developing these resources could cover a significant portion of EU demand for rare-earths, reinforcing resilience in high-tech and clean-energy supply chains.
Both Rare Earths Norway and LKAB exemplify the continent’s strategic pivot: leveraging domestic mineral wealth to reduce dependency on imports, secure sustainable supply, and strengthen Europe’s role in the global critical-minerals market.
