Sweden's government has declared mining of critical metals and rare earth minerals a national security interest, fast-tracking permits and investment in a strategic bid to reduce Europe's dependence on China.
Enterprise Minister and Deputy Prime Minister Ebba Busch announced the new strategy on Thursday, calling European industry's reliance on Chinese rare earths a "systemic risk." China controls roughly 90% of global rare earth refining and a dominant share of mining — leverage Beijing has wielded aggressively in trade disputes with Washington and others.
The centerpiece of Sweden's push is the Per Geijer deposit, located near LKAB's existing Kiruna mine in the Arctic north. With 1.2 billion tons of total mineral resources, including 2.2 million tons of rare earth oxides, it is one of the European Union's flagship projects for reducing reliance on Chinese supply chains.
"We believe that this can contribute significantly to both Sweden's, EU's and NATO's defence capabilities," Busch told a news conference.
The new strategy makes it easier for the state to assign land to mining projects — though this creates tensions with Sami reindeer-herding communities who say expanded mining would threaten their traditional way of life. The government is also considering creating a state-owned investment company for the Swedish mining sector.
"Today, to put it plainly, the government lacks concrete tools to wisely contribute to accelerating and attracting investments in key projects in crucial strategic projects," Busch said.
The move aligns with broader Western efforts to secure critical mineral supply chains for electric vehicles, wind turbines, defense systems, and electronics. Europe currently imports over 90% of its rare earths from China, a vulnerability that the war in Ukraine and escalating US-China trade tensions have thrown into sharp relief.
LKAB estimates Per Geijer could eventually supply up to 18% of the European Union's demand for rare earths — a significant but partial solution to a deep strategic dependency.
