A mining company has made a groundbreaking discovery in continental Europe – the largest deposit of rare-earth elements (REEs). These materials are crucial for various military and technological components.
Last week, Norway reported uncovering “a truly transformational asset” that could establish an efficient rare earths chain for Europe.
Despite being named “rare earths,” these 15 types, including yttrium, are not actually rare but challenging to extract and purify. China currently dominates the global production and processing of REEs, with a significant impact on the European Union and the United States, causing concerns over national security.
The Fen Carbonatite Complex in Norway, estimated to hold approximately 8.8 megatons of rare earth oxides, with 1.5 megatons essential for magnet production crucial in wind turbines and electric cars.
The company projects an investment decision of NOK10 billion ($943 million) by 2030 to kickstart the mining process post exploration, technology development, and test mining in the area.
The Critical Raw Materials Act, effective as of May 23rd, mandates the EU to source and process a percentage of critical materials domestically, aiming to reduce dependency on non-EU suppliers and mitigate supply chain risks.
Ursula von der Leyen from the European Commission predicts that rare earths will soon outweigh oil and gas, anticipating a fivefold increase in demand by the decade’s end. China, on the other hand, has recently demonstrated its willingness to manipulate its strategic position in metals.
Actively responding to threats, China imposed export control measures following U.S. sanctions on chipmaking, semiconductor sectors, and recently announced restrictions on equipment utilized in rare earth processing.