LKAB has officially begun construction of its new Demonstration plant for processing phosphorus and rare earth elements in Luleå, Sweden. This facility will be the first of its kind in Europe and serves as a crucial building block in LKAB’s strategy to diversify its business with new minerals and improve resource utilisation.
The construction of the demonstration plant is a major step forward for Europe’s critical minerals industry, as the continent currently relies heavily on imports for these essential materials. By extracting these minerals domestically, LKAB aims to strengthen Europe’s future competitiveness, improve security of supply, and enhance preparedness.
Importance of Critical Minerals
Phosphorus is a vital element for food security, as it is used in the production of mineral fertilisers. Rare earth elements are essential for the electrification and digitalisation of society, playing a crucial role in the production of permanent magnets for electric vehicles and wind turbines.
LKAB’s demonstration plant is expected to meet approximately seven times Sweden’s needs and six percent of the EU’s demand for phosphorus in agriculture. The company also plans to extract rare earth elements from the facility, which are currently not mined in Europe.
Government Support and Collaboration
The Swedish government has recognized the importance of this project and has expressed its support for LKAB’s efforts. Minister for Energy, Business and Industry, Ebba Busch, emphasised the significance of the facility in reducing Europe’s import dependency and ensuring access to critical minerals for the future. Several local and regional authorities have also welcomed the project, highlighting its potential benefits for the region’s economy and development.
LKAB’s Investment and Future Plans
LKAB has invested approximately 800 million SEK (approx 70 mln Euro) in establishing the demonstration plant, which is expected to be operational in 2026. The company plans 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 demonstration plant will also serve as a research and development center, providing an opportunity to explore and develop future potential sources for further refinement. LKAB has identified significant potential for extracting phosphorus and rare earth elements from other mineralizations, and the results from the plant will form the basis for future decisions on scaling up production.
About LKAB
LKAB is a leading international mining and minerals group that offers sustainable iron ore, minerals, and special products. The company is committed to developing carbon-free processes and products by 2045 and is driven by its vision of a sustainable future. With a workforce of over 5,200 employees in 12 countries, LKAB generated sales of about SEK 43 billion in 2023.
