Large occurrence in Sweden: What great opportunity the discovery of rare earths holds - and what problems

There are a number of elements that hardly anyone knows by name, but which are decisive for almost all modern technologies - especially those on which the energy transition depends to a large extent.

As a component of permanent magnets, for example, neodymium ensures that electric motors turn and wind turbine generators generate electricity.

Erbium-doped glass fibers serve as signal amplifiers.

Cerium is found in many catalytic converters, and hardly any LED can do without yttrium alloys.

The 15 lanthanides including yttrium are called rare earths.

However, this does not mean that these metals are really rare.

For example, lanthanum is around 400 times more common in the earth's crust than silver and more than 10,000 times more common than gold.

However, the rare earths are never found as pure elements, but only in ores.

The concentration there is often less than five percent, which usually makes mining uneconomical.

Accordingly, "scattered metals" would be a more appropriate name for these important commodities.

Since the late 1990s, China has established itself as the main supplier of rare earths.

In recent years, the United States, Australia and Myanmar have increased their production capacities. Nevertheless, China's market share in 2021 was still 64 percent with 168,000 tons mined.

This monopoly position is anything but unproblematic, especially for Europe, which is completely dependent on imports.

For example, in 2010, the price of neodymium suddenly increased tenfold due to Chinese export restrictions.

According to a report by the German Raw Materials Agency, the increase in demand after the corona pandemic had subsided also caused noticeable price increases for all rare earths last year.

Dampened expectations

The announcement of the discovery of large quantities of rare earths in Kiruna in northern Sweden was received with corresponding enthusiasm in mid-January.

According to the state mining company LKAB, more than a million tons of the metals are underground there.

The discovery is no coincidence, as LKAB has been mining iron ore in the “Per Geijer” deposit there since the 1960s.

The precious metals that have now been discovered are found in the mineral apatite together with phosphorus and iron ores.

Since both iron and phosphate are of great industrial importance, the simultaneous mining of rare earths would be economically worthwhile.

According to the German Raw Materials Agency, Europe would be a lot more self-sufficient with these rare earths - even with the expected increase in demand as part of the energy transition, when more and more permanent magnets and batteries are needed.

Nevertheless, the Swedish mining company dampened expectations of a quick end to dependency.

It will probably take ten to fifteen years before production can start in Per Gejier.

First, any risks to flora, fauna and groundwater must be ruled out.

The fact that such environmental risks are ignored in China is ultimately one reason for the country's market dominance.

"The duration of the approval process was the biggest challenge in the past," says David Högnelid, spokesman for LKAB.

“Today, however, there seems to be a broad consensus among policymakers that both critical minerals and regional production are required.