KIRUNA (dpa-AFX) - A Swedish mining company says it has discovered the largest known deposit of rare earth oxides in Europe. The deposit near a large iron ore mine in Kiruna contains more than one million tons of rare earth oxides, state-owned LKAB announced Thursday ahead of a visit to the region by the EU Commission. That amount would be enough to meet much of the future EU demand for the production of permanent magnets needed for electric motors in e-vehicles and wind turbines, among others.

"This is good news, not only for LKAB, the region and the Swedish population, but also for Europe and the climate," said CEO Jan Moström. The deposit could become a significant building block for the production of key raw materials crucial to the green transition, he said. At an underground press conference, he also pointed out that the full extent of the deposit is unclear. "We don't know how big it really is."

LKAB operates the world's largest underground iron ore mine in Kiruna. Because of the ore mining, parts of the country's northernmost city will have to relocate several kilometers away - some 6,000 residents will be relocated, equivalent to one-third of the population. In the immediate vicinity of the mine, the Per Geijer deposit was discovered some time ago and has now been successfully explored.

Rare earths are also found in consumer goods such as smartphones, laptops and televisions. The world market is dominated by China, while there is currently no mining of rare earth elements in Europe. European countries are therefore dependent on imports for the production of e-cars and wind turbines. These products need strong permanent magnets, which in the case of e-cars contain half a kilogram to several kilograms of the rare earths neodymium and praseodymium, depending on the size of the motor.

In Kiruna, a representative of the German automotive supplier Schaeffler emphasized the importance of raw material extraction in Europe. Schaeffler plans to produce many millions of electric motors, said Florian Schupp, the purchasing manager responsible for the automotive business. For this, it needs rare earths. Today, Schaeffler buys outside Europe - but the goal is to increasingly meet the demand in Europe.

Mining projects such as the one in Sweden are also to receive more support from Brussels. In the spring, the EU Commission intends to propose measures to strengthen Europe's strategic autonomy with regard to important raw materials. One argument is also that there can be no ecological and digital transformation without this autonomy.

According to a Commission report from 2020, at that time the EU was sourcing 98 percent of its rare earth demand from China. At the same time, this means that Europe would have a huge problem should China cut back or even stop supply for political or strategic reasons. In addition, demand is likely to continue to rise sharply in the wake of electrification. "Demand for rare earths used in permanent magnets, such as for electric vehicles, digital technologies or wind generators, could increase tenfold by 2050," the commission paper says.

However, the road to possible mining of the metals in Kiruna is long, according to LKAB. The first step would probably be to apply for a permit this year. Looking at other permitting processes in the industry, it would likely take at least 10 to 15 years before mining could actually begin and raw materials could be brought to market.

Permitting procedures need to be changed to ensure increased mining of this type of raw material in Europe, LKAB chief Moström urged. Access, he said, is a risk factor for the competitiveness of European industry as well as for climate protection./trs/DP/men