LKAB Begins Construction of Rare Earth and Phosphorus Plant

by | 28. Jan 2025 - 16:10 | Economy

The demonstration plant in Luleå, Sweden, marks the first step in establishing an industrial park dedicated to critical minerals.

State-owned Swedish mining company LKAB has officially commenced construction of its demonstration plant for processing phosphorus and rare earth elements in Luleå, Sweden. First announced in 2023, the plant is scheduled to become operational in 2026. The primary goal is to optimize the company’s material flows from the Gällivare iron mine and extract critical minerals from material that is currently being discarded.

Rare earth elements are needed from various high-tech fields, including robotics, wind energy, electric vehicles, as well as consumer electronics, with the leading global producer being China. Phosphorus, on the other hand, is primarily used in producing mineral fertilizers, with around half of the world’s food production relying on it. Europe imports 90 percent of its phosphorus, with Russia historically serving as a key supplier, according to Eurostat.

With the new plant, LKAB seeks to progress towards making Sweden and the EU less dependent on imports. The company recently submitted applications to be recognized as strategically important under the EU’s Critical Raw Materials Act for the industrial park in Luleå, which the demonstration plant is a part of, as well as the Gällivare mine and the Per Geijer rare earth deposit (we reported). With the CRMA, the bloc seeks to diversify its supplies of critical raw materials and ramp up domestic mining, processing, and recycling capacities. With the facility in Luleå, “we are taking a decisive step toward reducing Europe’s import dependency and ensuring access to critical minerals and metals for the future,” said Ebba Busch, Swedish Minister for Energy, Business, and Industry, who also participated in the groundbreaking ceremony.

Photo: LKAB