This translates to approximately 8.8 million MT of total rare earth oxides, with an estimated 1.5 million MT of magnet-related rare earths, which are crucial for electric vehicles and wind turbines.
The discovery positions Norway as a vital player in Europe’s rare earths and critical raw materials supply chain.
Currently, Europe lacks active rare earths extraction, making this find potentially significant in reducing dependency on external sources, notably China, which currently dominates the global rare earths market.
The deposit is expected to contribute to the European Union’s goal of providing for at least 10 percent of its annual rare earths demand by 2030, as outlined in the region’s Critical Raw Materials Act.
“This is a very important moment for Rare Earths Norway, the resource estimate underscores the potential of the deposit to be a truly transformative asset that can underpin a secure rare earths value chain for Europe,” Alf Reistad, CEO of Rare Earths Norway, said in a press release. “We are working with leading partners, such as Montanuniversität Leoben in Austria to develop this deposit with the world’s most sustainable mine and mineral processing technology minimizing the environmental footprint from mine to magnet.”
Bernd Schäfer, CEO of EIT RawMaterials, a company that supported Rare Earths Norway’s work, highlighted the broader implications for the region, commenting, “This project underscores the potential and the opportunity for Europe to invest in world class mining and processing projects that will help secure our industrial value chains and set new standards in environmental and social performance through technology, innovation and collaboration.”
Market watchers view the discovery as a potential game changer for the European rare earths market. Rare earths output from Norway could help stabilize supply chains, reduce prices and foster the growth of green technologies.
Rare Earths Norway plans to continue its exploration efforts at Fen, with a new drilling campaign set for 2024. The company aims to further assess the economic viability of the project through additional studies, with results expected later this year.
The firm also intends to establish a pilot factory in the municipality of Nome to test new technologies and optimize mineral processing. Buoyed by an investment of 20 million Norwegian kroner from Telemark Utviklingsfond, Rare Earths Norway said the pilot will serve as an educational platform for future staff training.
The exploration and development phases are projected to culminate in a 10 billion Norwegian kroner investment decision by 2030, aiming to cover 10 percent of Europe’s rare earths demand.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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