Permit application for Industrial Park in Luleå – crucial for future supply of critical minerals in Europe

LKAB has submitted its environmental permit application for the processing of phosphorus and rare earth elements in Luleå, Sweden. The planned Industrial Park could become the first of its kind in Europe and a significant contribution to increased self-sufficiency of critical minerals, with potential to produce seven times the annual need of phosphorus for Swedish agriculture.

“This application is the culmination of four years of dedicated work. It represents an important milestone for the region, Sweden, and Europe’s resilience. By extracting phosphorus and rare earth elements from material we already mine we can strengthen our future competitiveness as we plan to expand our mining operations, while at the same time securing supply provision and providing society with the critical minerals needed for the green transition,” says Darren Wilson, Senior Vice President, LKAB Business Area Special Products.

Phosphorus is essential in the production of mineral fertilisers and critical for food provision in Sweden and the EU, while rare earth elements used in permanent magnets for electric vehicles and wind turbines are indispensable for the electrification and digitalisation of society. Once fully operational, the industrial park is estimated to produce enough phosphorus to meet seven times Sweden’s and eight percent of the EU’s demand. Currently, there is no extraction of rare earth elements in Europe. 

“The geopolitical situation and Sweden’s goal of achieving net-zero emissions by 2045 make the need for critical minerals urgent. 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,” says Darren Wilson.

The application submitted to the Land and Environmental Court seeks an environmental permit for large-scale industrial operations and port operations on Svartön in Luleå. The operation is based on utilising waste streams from LKAB’s iron ore production in Gällivare, where apatite concentrate is planned to be produced for further processing in Luleå. Here, LKAB plans to produce phosphorus and rare earth metals, as well as gypsum as a by-product for the construction industry. The industrial park will be scaled up step by step with additional facilities over time, aiming for full-scale operations in the 2030s.

“LKAB's environmental permit application is another step towards the development of the full-scale industrial park in Luleå. It is encouraging to see them move forward according to their plan with this establishment, which is important for the continued development of both the municipality and the region as a hub for the green transition. The production of these critical minerals for wind turbines, electric vehicles, and food security is essential for our entire society and provides an opportunity to create new jobs for the future,” says Carina Sammeli, Chair of the Municipal Board of Luleå Municipality.

On 24 October 2024, LKAB made an investment decision to establish a Demonstration facility in Luleå, which will verify the process to produce 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. This is also dependent on the environmental permit for LKAB’s operations and apatite plant in Gällivare, which is currently under review.

About the Environmental Permit Application for the Industrial Park in Luleå

• The application to the Land and Environmental Court seeks a permit for large-scale industrial and port operations at Svartön, Luleå. The work has been ongoing for four years.
   
• The planned operations entail environmental effects related to the use of resources such as chemicals, water, and energy, as well as emissions to air and water, increased transport in the immediate area, noise, and risks associated with handling chemicals.
   
• The operation will also include and affect water and land environments, such as the construction of a new quay and land reclamation to expand the production area.
   
• The submission of the application has been preceded by public consultations in 2022, with additional consultations held in 2023 and 2024.
   
• LKAB proposes that the main hearing take place at the end of May 2026, with a court decision expected during or after the summer of 2026.

About LKAB and Critical Minerals

• LKAB plans to start extracting critical minerals from the existing iron ore mine in Gällivare by establishing a new processing plant for apatite. This involves utilising material streams from iron ore production that are currently treated as waste.

• The apatite concentrate from Gällivare is then transported to the planned industrial park in Luleå, where LKAB will produce rare earth elements, phosphorus for mineral fertilisers, and gypsum as a by-product for the construction industry.

• On 24 October 2024, LKAB announced an SEK 800 million investment in a demonstration plant in Luleå, which will verify and develop the process required for the extraction of phosphorus and rare earth elements. It is planned to be operational by the end of 2026 and is an important part of the work to develop the full-scale industrial park.

• The EU classifies raw materials as critical due to their high dependence on imports and their importance for our economy and the green transition. This includes phosphorus and rare earth elements. Common to these raw materials is also that there is a high risk of supply disruptions, for example related to geopolitical risks.

• Phosphorus is mainly used to produce mineral fertilisers, and about half of the world's food production depends on it. Europe depends on imports for 90 percent of its phosphorus, with Russia previously being a major supplier.

• Rare earth elements (REE) are used, among other things, in permanent magnets for electric vehicle motors and wind turbine generators, with China dominating the global value chain. Europe currently has no extraction of these rare earth elements.

• LKAB has applied to make the iron ore mine in Gällivare, the planned industrial park in Luleå and the new iron ore deposit (Per Geijer) in Kiruna, which contains high levels of rare earth elements and phosphorus, as Strategic Projects under the EU’s Critical Raw Materials Act. 

For more information and interview requests, please contact:

Media hotline: +46 771 76 00 10, press@lkab.com 

Tags: