LKAB opens rare earths demo plant

LKAB has commenced construction of a demonstration plant for processing phosphorus and rare earth elements within a planned industrial park in Luleå, Sweden. Originally announced in October 2024 at a cost of €9.8 million, the plant is planned to be operational in 2026. It will also serve as an R&D centre. 

“The aim is to further develop and verify the process for utilising material flows from iron ore production in Gällivare, where apatite concentrate is produced for further refinement and production of critical minerals in Luleå,” the company stated. A permit process is under way for operations in Gällivare, which should be completed in 2025. “Through a step-wise expansion, the operations can then be scaled up with additional processing facilities over time, aiming for full operation during the 2030s.” 

Part of the aim is to strengthen security of supply when Europe is almost entirely dependent on imports for phosphorus and rare earth elements and demand is rising sharply. It is estimated that the park will meet Sweden’s needs seven times over and 6% of EU demand for phosphorus in fertilisers.  

At present, no rare earth elements are mined in Europe, but they are crucial for the electrification and digitalisation. LKAB has about 1.7 million tonnes of rare earth oxides at the Per Geijer iron ore deposit in Kiruna, which is one of Europe’s largest deposits of rare earth elements. This deposit also has high concentrations of phosphorus.