LKAB constructs facility for critical minerals – the first of its kind in Europe
LKAB has now commenced construction of its new Demonstration plant for processing phosphorus and rare earth elements in Luleå. The facility is the first in a planned Industrial park and marks an important step in the company's ambition to diversify its business with new minerals through improved resource utilization. At the same time, the initiative has clear geopolitical dimensions, with the potential to significantly increase Europe's self-sufficiency in critical minerals.
“The world has now turned its attention to metals and minerals once again. We are currently almost entirely dependent on imports for phosphorus and rare earth elements, while demand is rising sharply. By extracting these critical minerals, LKAB can make better use of the material we already mine and strengthen our future competitiveness, while also improving security of supply and preparedness in Europe. This facility is a crucial building block to make that possible,” says Jan Moström, President and CEO of LKAB.
The supply of phosphorus for mineral fertilizers is essential for food security in Sweden and the EU, while rare earth elements are critical for the electrification and digitalization of society, such as the production of permanent magnets for electric vehicles and wind turbines. Once fully operational, the Industrial park’s production is estimated to meet approximately seven times Sweden’s needs and six percent of the EU’s demand for phosphorus in agriculture. Currently, there is no mining of rare earth elements in Europe.
”The green transition and the electrification of our society start in the mine. It is an unsustainable contradiction to want electric vehicles and wind turbines without also taking responsibility for the raw materials. With this facility, we are taking a decisive step toward reducing Europe’s import dependency and ensuring access to critical minerals and metals for the future”, says Minister for Energy, Business and Industry, Ebba Busch.
On October 24, LKAB’s board decided to invest approximately 800 million SEK in establishing the Demonstration plant, which is planned to be operational in 2026. The aim is to further develop and verify the process for utilizing material flows from iron ore production in Gällivare, where apatite concentrate is produced for further refinement and production of critical minerals in Luleå. Through a stepwise expansion, the operations can then be scaled up with additional processing facilities over time, aiming for full operation during the 2030s.
”I am very pleased that LKAB has chosen to build a Demonstration plant for critical minerals in Luleå. This strengthens our city as a hub for innovation and sustainable development while building on the historical ties with Gällivare and the Malmbanan railway. The investment brings new job opportunities and contributes to a sustainable future—not only for Luleå and the region but for all of Europe. We look forward to following this important project and the positive impact it will create, says Fredrik Hansson, Deputy Mayor of Luleå municipality.
”Norrbotten is on the threshold of a new industrial era, and the collaboration between Gällivare and Luleå is a driving force for the entire region. Through LKAB’s investment in critical minerals, we position ourselves as a leading region in the green transition. The journey begins in the mine in Gällivare, with materials that are then refined into valuable raw materials needed by us and the world. This also lays a foundation for positive societal development that benefits us as a municipality, says Birgitta Larsson, Chair of the Municipal Board, Gällivare municipality.
On December 20, LKAB submitted an environmental permit application to the Land and Environment Court for the full-scale Industrial park for critical minerals in Luleå. At the same time, the permit process is underway for LKAB’s operations, including the apatite plant in Gällivare, with a decision expected at the end of 2025. The demonstration plant currently under construction will also serve as a Research and development center, providing an opportunity to explore and develop future potential sources for further refinement.
“Thanks to our successful exploration efforts, we see enormous potential in continuing to develop the technology, aiming to extract phosphorus and rare earth elements from other mineralizations as well. The results from the plant, together with the environmental permit for the industrial park, will form the basis for future decisions on scaling up production. The ambition is to secure the substantial expansion opportunities we foresee step by step, with the Per Geijer deposit in Kiruna playing a crucial role,” says Jan Moström.
At the end of 2023, LKAB’s mineral resources of REE oxides (Rare Earth Oxides) in the new Per Geijer deposit in Kiruna amounted to approximately 1.7 million tons in situ, making it one of Europe’s largest deposits of rare earth elements. The deposit is primarily an iron ore deposit with high concentrations of both phosphorus and rare earth elements.
About LKAB and critical minerals
- LKAB plans to start extracting critical minerals from the existing iron ore mine in Gällivare by establishing a new processing plant for apatite. This involves utilising material streams from iron ore production that are currently treated as waste.
- The apatite concentrate from Gällivare is then transported to the planned industrial park in Luleå, where LKAB will produce rare earth elements, phosphorus for mineral fertilisers, and gypsum as a by-product for the construction industry.
- On 24 October 2024, LKAB announced an SEK 800 million investment in a demonstration plant in Luleå, which will verify and develop the process required for the extraction of phosphorus and rare earth elements. It is planned to be operational by the end of 2026 and is an important part of the work to develop the full-scale industrial park.
- The EU classifies raw materials as critical due to their high dependence on imports and their importance for our economy and the green transition. This includes phosphorus and rare earth elements. Common to these raw materials is also that there is a high risk of supply disruptions, for example related to geopolitical risks.
- Phosphorus is mainly used to produce mineral fertilisers, and about half of the world’s food production depends on it. Europe depends on imports for 90 percent of its phosphorus, with Russia previously being a major supplier.
- Rare earth elements (REE) are used, among other things, in permanent magnets for electric vehicle motors and wind turbine generators, with China dominating the global value chain. Europe currently has no extraction of these rare earth elements.
- LKAB has applied to make the iron ore mine in Gällivare, the planned industrial park in Luleå and the new iron ore deposit (Per Geijer) in Kiruna, which contains high levels of rare earth elements and phosphorus, as Strategic Projects under the EU’s Critical Raw Materials Act.
For further information, please contact:
Mikko Viitala, media contact LKAB
phone: +46 70 309 8163, mail: mikko.viitala@lkab.com
Mia Widell, Press Secretary to Minister for Energy, Business and Industry Ebba Busch
phone: + 46 76 125 17 09, mail: mia.widell@regeringskansliet.se
LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by almost 5,200 employees in 12 countries. In 2023, the LKAB group had sales of about SEK 43 billion. nlkab.com
The green transition and the electrification of our society start in the mine. It is an unsustainable contradiction to want electric vehicles and wind turbines without also taking responsibility for the raw materials. With this facility, we are taking a decisive step toward reducing Europe's import dependency and ensuring access to critical minerals and metals for the future.
The world has now turned its attention to metals and minerals once again. We are currently almost entirely dependent on imports for phosphorus and rare earth elements, while demand is rising sharply. By extracting these critical minerals, LKAB can make better use of the material we already mine and strengthen our future competitiveness, while also improving security of supply and preparedness in Europe. This facility is a crucial building block to make that possible.
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