LKAB Acquires Major Stake in REEtec, Strengthens Nordic Rare Earth Industry

Investment and Ownership

LKAB has invested MNOK 400 in REEtec's NOK 1.2 billion share issue, becoming the principal shareholder. Other new shareholders include Norwegian state-owned Nysnø Klimainvesteringer, Mercuria, and TechMet. The former principal owner, Scatec Innovation AS, retains a major shareholding and continues to be active in the company.

Factory Development and Production

REEtec's first factory for the separation of rare earth elements will be built in Herøya, Norway, with production starting in 2024. A second factory is planned for 2026 to process material from LKAB, which will be available by 2027. The Herøya factory will produce 720 tonnes of neodymium and praseodymium, meeting 5% of Europe's demand.

Supply Chain and Agreements

The raw material for the first factory will come from Vital Metals in Canada, with an agreement allowing for a tripling in volumes. REEtec has sold 80% of the planned production through agreements, including a five-year contract with Schaeffler Group, a global supplier to the vehicle industry.

Technological and Environmental Impact

REEtec's innovative separation technology, developed since 2008, combines high efficiency and competitive cost with up to 90% lower carbon dioxide emissions. The process recovers and recycles virtually all inputs, using low energy from Norway’s hydropower sources. This technology enables the production of high-grade products with significantly lower environmental impact than conventional methods.

Strategic Importance

Demand for rare earth metals is expected to increase more than five-fold by 2030, driven by the green transition. Europe, currently dependent on imports, aims to boost self-sufficiency in critical raw materials. LKAB and REEtec's collaboration marks a significant step towards establishing a strong and sustainable Nordic value chain for rare earth elements.