Swedish iron ore miner LKAB has applied for an environmental permit to process rare earth elements in Luleå, northern Sweden, Kallanish learns.

The permit application submitted to the Land and Environmental Court seeks approval for large-scale industrial and port operations on Svartön. The company plans to process rare earths and phosphorous using waste streams from its iron ore production in Gällivare, where apatite concentrate will be produced. Gypsium will also be produced as a by-product. 

LKAB intends to build an industrial park, which will gradually scale up with additional facilities over time. Full-scale operations are targeted “in the 2030s.” The project could become the first of its kind in Europe, significantly contributing to the region’s self-sufficiency of critical minerals, the company says in a statement on Friday.

“The geopolitical situation and Sweden’s goal of achieving net-zero emissions by 2045 make the need for critical minerals urgent,” comments Darren Wilson, senior vice president, LKAB Business Area Special Products. “The EU is today entirely dependent on imports of phosphorus and rare earth elements, which it classifies as critical raw materials. This application is crucial for enabling a future investment decision for full-scale production in Luleå.”

Management expects to have a court decision “during or after the summer of 2026.” This timeframe is based on the main application hearing taking place at the end of May 2026. The project has already been subject to public consultations in 2022, 2023 and 2024.

In October, LKAB decided to invest SEK 800 million ($72.5m) in a demonstration facility in Luleå to verify the process of producing critical minerals. “The results from the plant, along with the environmental permit for the industrial park, will serve as the basis for future decisions for scaling up production,” a spokesperson explains.

Last year, the miner said it was targeting initial rare earth production in the park in 2027. Its Per Geijer deposit, in the Kiruna iron ore mining area, is estimated to hold 1.7 million tonnes of rare earth oxides. It could be one of the largest rare earth elements deposits in Europe.