Key facts
- Sweden has declared mining of critical metals and rare earth minerals a national security interest.
- The move aims to reduce reliance on China, which dominates global rare earth supply chains.
- Enterprise Minister Ebba Busch stated the strategy will accelerate planning and permissions to attract investment.
- The government is considering establishing a state-owned investment company for the mining sector.
- The strategy could impact the traditional way of life for the Sami indigenous people.
Sweden has declared the mining of critical metals and rare earth minerals a national security interest, a move aimed at reducing the country's and Europe's dependence on China. Enterprise Minister Ebba Busch announced the new strategy on Thursday, stating it would accelerate planning and permissions to attract investment in vital projects.
China currently dominates both the mining and refining of rare earth minerals, which are essential for clean energy technologies, defense systems, and electric vehicles. Beijing's use of export controls has previously served as a significant lever in international trade disputes.
Sweden possesses substantial mineral resources, including the Per Geijer find, which is considered a flagship project for the European Union's efforts to diversify its supply chains away from China. This deposit alone contains 1.2 billion tons of total mineral resources, with 2.2 million tons of rare earth oxides, making it critical for European interests.
Busch explained that designating mining as a national security interest would provide the government with more concrete tools to support and attract investments in strategic projects. She highlighted that Europe's reliance on China for these materials represents a "systemic risk" to the defense capabilities of Sweden, the EU, and NATO.
The new strategy is expected to simplify the process for the state to assign land for mining projects. This aspect has raised concerns among the Sami reindeer-herding indigenous people, who argue that the expansion of mining operations would threaten their traditional way of life. Additionally, the Swedish government is exploring the possibility of establishing a state-owned investment company dedicated to the mining sector.