Energy competition between the USA and China is a long-standing story; however, this one nation is now on the radar of American producers. Considering the current energy crisis the world is in, where we are mining our minerals and energy resources not only at an unsustainable rate to keep up with our energy demands but also causing environmental degradation in the process, resource dominance is becoming a concern for many nations. Now, this one country has recently made a significant discovery of this resource.
The fight for resource dominance around the world
Currently, the production of fossil fuels, rare earth metals, and other precious minerals is becoming a global concern. The problem the world currently sits with is twofold: the world’s energy demands rely on these resources, yet we are mining them at an unsustainable rate. Secondly, our reliance on these resources is contributing to irreversible climate and environmental damage.
As such, countries are looking towards including renewable energy solutions in their energy plans in order to achieve carbon-neutrality, but are also looking to continue safeguarding these resources, which remain within their borders. For example, China currently holds significant dominance in the production and exporting of rare earth metals, which are essential for the production of the magnets used in renewable energy solutions such as electric vehicles and wind turbines.
The US has the second-largest electric vehicle market in the world; however, the country heavily depends on China for importing rare earth metals in order to produce the technology needed for these vehicles. According to the U.S. Geological Survey (USGS, 2024), about 74% of U.S. rare earth imports between 2018–2021 came from China. Now, however, a new nation is entering the rare earth metal market, which could significantly alter trade relations for these precious resources.
A new nation to compete with China with this resource
While China continues to dominate a variety of energy and resource production vicinities, Sweden has recently discovered over 1 million tonnes of rare earth oxides in the country’s Per Geijer deposit located near Kiruna, far above the Arctic Circle, making it the largest known one in Europe. The deposit was identified by LKAB in 2023, a state-owned Swedish mining company.
“This is good news, not only for LKAB, the region and the Swedish people, but also for Europe and the climate. This is the largest known deposit of rare earth elements in our part of the world, and it could become a significant building block for producing the critical raw materials that are absolutely crucial to enable the green transition. We face a supply problem. Without mines, there can be no electric vehicles,” says Jan Moström, President and Group CEO, LKAB.
While a production start at the circular industrial park planned in Luleå is estimated for 2027, the deposit holds the potential to push Europe to become self-sufficient in its raw metal production as well as influence trade relations with producers like the US, which is a significant player in the conceptualization and production of renewable energy technology.
Other resources found in the region of competing nations
Not to be outdone, China continues to find other resource deposits to maintain its position as a dominant player in exporting resources. The country recently discovered lithium deposits near Mount Everest, a critical resource in the production of the batteries needed to power electric vehicles.
While the resource is essential for the alternative engine industry, resource deposit finds like this in China and Sweden raise concerns over whether or not we are achieving true sustainability if the practices used to extract the resource for renewable products continue to be damaging to the environment. While it is clear that we need alternative solutions, in an energy-intensive world, the biggest challenge that lies ahead is reducing our overall reliance on energy.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
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