Amining company’s discovery of continental Europe’s largest deposit of rare earth elements (REEs) could chip away at China’s global dominance over the materials, which are used to make a range of critical technological and military components.
Rare Earths Norway said last week it had found “a truly transformative asset that can underpin a secure rare earths value chain for Europe.”
“Our ambition is to deliver 10 percent of the European demand for magnet-related REEs (NdPr) in the first phase of our operation,” CEO Alf Reistad told Newsweek. Such REEs have many high-tech applications, including for electric vehicle motors, wind turbines and precision-guided missile systems. The company
Yttrium, neodymium and the 15 other types of rare earths aren’t truly rare, but they are difficult to extract and purify. China produces about 60 percent of REEs and processes 90 percent, accounting for 98 percent of the European Union‘s imports and 80 percent of the U.S.’s. This is a national security concern for Washington and Brussels.
Amining company’s discovery of continental Europe’s largest deposit of rare earth elements (REEs) could chip away at China’s global dominance over the materials, which are used to make a range of critical technological and military components.
Rare Earths Norway said last week it had found “a truly transformative asset that can underpin a secure rare earths value chain for Europe.”
“Our ambition is to deliver 10 percent of the European demand for magnet-related REEs (NdPr) in the first phase of our operation,” CEO Alf Reistad told Newsweek. Such REEs have many high-tech applications, including for electric vehicle motors, wind turbines and precision-guided missile systems. The company
Yttrium, neodymium and the 15 other types of rare earths aren’t truly rare, but they are difficult to extract and purify. China produces about 60 percent of REEs and processes 90 percent, accounting for 98 percent of the European Union‘s imports and 80 percent of the U.S.’s. This is a national security concern for Washington and Brussels.
A July 29, 2019, photo of Steenkampskraal, a high-grade deposit of rare earth minerals in South Africa’s Western Cape Town province. A Norwegian mining company says it has discovered the largest rare-earth deposit in continental… RODGER BOSCH/AFP VIA GETTY IMAGES
The Fen Carbonatite Complex, about 70 miles southwest of Oslo, is believed to contain around 8.8 megatons of rare earth oxides. About 1.5 megatons are believed to be magnet-related rare earths, crucial for wind turbine and electric vehicle production.
“Exploration, development of new technologies, and test mining should lead to an investment decision of NOK10 billion ($943 million) to develop the first stage of mining within 2030,” Rare Earths Norway said.
According to a timeline shared with Newsweek, the company forecasts a production volume of 2,000 metric tons of NdPr rare earths, or about 10 percent of Europe’s estimated demand for 2030, “dependent on financial risk mitigation for the 2024-2026 period and fast-track permitting process.”
The production target rises to 10,000 metric tons, equivalent to around 30 percent of European demand, by 2045.
The Critical Raw Materials Act, which came into force on May 23, stipulates the EU must source 10 percent of its annual consumption of critical raw materials domestically, as well as carry out 40 percent of its processing. Norway is not an EU member, but takes part in its single market.
The act also mandates that no more than 65 percent of a strategic raw material can come from a single third country, to curb the EU’s dependency on external suppliers and lower supply chain risks.
European Commission President Ursula von der Leyen highlighted the importance of rare earths in her 2022 State of the Union address, predicting that “Lithium and rare earths will soon be more important than oil and gas.” She noted that the demand for these metals would “increase fivefold” by the next decade.
China has recently demonstrated its willingness to leverage its hold over the strategic metals.
Last year, Beijing tightened reporting controls on exports of strategic rare earth elements. This was seen as a response to U.S. restrictions on semiconductors and chip-making equipment, which the Biden administration says is intended to limit Chinese advancements in military technology.
China’s Ministry of Commerce also announced restrictions on equipment used to process rare earth elements and magnets.
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