On Thursday, the Swedish government announced a strategic initiative to bolster its mining sector, specifically focusing on rare earth elements, to reduce European dependence on China.
As a mineral-rich nation, Sweden currently hosts Europe’s largest iron ore mine and has identified significant rare earth deposits within the same Arctic Circle site in Kiruna.
Rare earth minerals are vital components for electric vehicle manufacturing, renewable energy technologies, defense systems, and modern computing. At present, China controls approximately 70% of global mining and refining operations.
Details of the Swedish Government Strategy
The Stockholm government has officially classified the extraction of critical metals and rare earth minerals as a matter of national security.
According to Deputy Prime Minister and Energy Minister Ebba Busch, this designation is intended to accelerate the permitting process for new extraction projects and incentivize further investment.
“Sweden must establish itself as a leading mining nation,” Busch stated while outlining the new strategy, noting the government’s intent to “streamline authorization procedures so decisions can be taken more quickly.”
Busch argued that enhancing domestic mining capacity could significantly strengthen the defense capabilities of Sweden, the EU, and NATO, labeling Europe’s current reliance on China a “systemic risk.”
The minister also noted that the policy aims to simplify the state land allocation process for mining projects. However, this remains a point of contention with the indigenous Sami people, whose traditional reindeer-herding livelihoods face potential disruption from industrial expansion.
Furthermore, the government is exploring the creation of a state-owned investment company dedicated to the mining sector.
“Currently, the government lacks the concrete tools necessary to effectively contribute to and accelerate investments in these crucial strategic projects,” Busch remarked.
Sweden’s Historical Mining Significance
Sweden has a deep-rooted mining history dating back to the 10th century, highlighted by the opening of the massive Falun copper mine. Historically, this mine produced up to two-thirds of Europe’s copper. The distinctive “Falu Red” pigment used on many Swedish buildings originates from the waste of these disused mines, which are now preserved as a UNESCO World Heritage Site.
In the modern era, the LKAB iron ore mine in Kiruna serves as a cornerstone of the industry. Sweden controls approximately 60% of Europe’s known iron ore deposits and accounted for nearly 90% of the continent’s iron ore extraction as of 2021—with Kiruna alone contributing one-third of that total.
The scale of operations in Kiruna has caused significant geological challenges, including ground subsidence that has required the relocation of entire residential blocks and the town’s church.
More than 90% of Sweden’s mining activity is concentrated in the resource-rich Norrland region, situated within Sapmi, the ancestral territory of the Sami people.
A key site in this region is the Per Geijer deposit, a major EU-backed project designed to curb China’s mineral monopoly. The site contains an estimated 1.2 billion tons of minerals, including 2.2 million tons of rare earth oxides.
While mining group LKAB is evaluating the site’s potential, experts suggest that securing permits to mine on Sami land could take up to a decade.
Currently, Sweden hosts four of the 47 strategic EU projects intended to decrease reliance on Chinese mineral supplies.
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