LKAB has announced a major investment to establish a Research and Development center and a Demonstration facility for processing phosphorus and rare earth elements in Luleå, Sweden, amounting to approximately SEK 0.8 billion. This initiative is part of LKAB’s strategy to enhance its operations in critical minerals, essential for electrification and climate transition.
Key highlights:
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- Milestone investment: The facility is expected to improve Europe’s self-sufficiency in critical minerals, addressing the continent’s heavy reliance on imports, particularly for phosphorus and rare earth elements (REE).
- Operational goals: The Demonstration plant is slated to be operational by the end of 2026, focusing on extracting valuable resources from LKAB’s iron ore production in Gällivare, previously considered waste.
- Product focus: The facility aims to produce three key products: phosphorus (for mineral fertilizers), rare earth elements (for electric vehicles, wind turbines, and electronics), and pure gypsum.
- Research and development: The investment will also support ongoing R&D efforts, exploring new processing methods and potential mineral sources, crucial for scaling up production in the future.
- Strategic importance: With significant mineral resources of REE in the new Kiruna deposit, LKAB’s investment positions it as a key player in the European market for these critical minerals, reducing dependency on imports, particularly from China.
Overall, this investment is a strategic step for LKAB in its transition towards sustainable mineral production, contributing to Europe’s green transformation goals.
