In Luleå, LKAB is building a new circular industrial park for the extraction of phosphorus and rare earth elements. This initiative is a key part of our transformation; by processing by-products from mining operations, we can help increase self-sufficiency in Sweden and the EU of raw materials that are critical for both food production and future technologies.
This facility, which will also produce gypsum as a by-product, could become the first of its kind in Europe and play a significant role in boosting Sweden’s and the EU’s self-sufficiency of critical minerals. Construction of a demonstration plant began in 2024 to test and develop the technology for processing phosphorus and rare earth elements. Through a phased scale-up, operations could subsequently be expanded to include additional facilities over time, reaching full operational status during the 2030s.
At the circular industrial park in Luleå, LKAB will produce a concentrate containing a mixture of rare earth elements that subsequently require separation. China currently dominates this segment of the market. In 2022, LKAB became the majority owner of the Norwegian company REEtec, which has developed an innovative and sustainable technology for separating rare earth elements—a process that generates up to 90 percent lower carbon emissions compared to the dominant Chinese production methods. This facility will produce rare earth elements such as neodymium and praseodymium, which are used in permanent magnets for applications including electric vehicle motors and wind turbines.
