The growing demand for electric vehicle batteries is expected to create a shortage of raw materials by 2025. Fortunately, the new mine in Sweden’s northernmost town Kiruna could be a potential solution to address this problem. It will also ensure a steady supply of electric batteries for Europe’s fast-growing market.
GlobalData research shows that investment in gigafactories is rapidly growing, with a projected global capacity of ten times its 2020 level by 2030. Although China currently has the highest number of gigafactories, Europe is expected to have a significantly larger share by 2030, going from nine percent in 2020 to an estimated 32 percent in 2030.
Establishing the new mine in Sweden could address the supply-demand gap for rare earth minerals sourced from China. It also can strengthen Europe’s capacity to manufacture electric cars with materials sourced within the region.
Sweden’s minister for energy, business and industry, Ebba Busch, recently praised the mine’s contribution to Europe’s green transition. She described the mine as “the most modern underground iron ore mine in the world.”
Busch also lauded its carbon-free sponge iron production and the extraction of critical minerals — setting a new global standard for the mining industry.
Sweden’s battery industry set to benefit from Kiruna mine
The Kiruna mine could benefit many battery companies in Sweden. Among these are a prominent battery manufacturer, Northvolt and several smaller companies, such as a Stockholm-based electric boat X Shore manufacturer.
According to X Shore CEO Jenny Keisu, there is a need for “decarbonization and disruption” in various industries, including boating. She said the battery requirements for boats are particularly stringent — they must withstand long-term exposure to saltwater and mists, as well as provide more continuous power and torque than car batteries due to the density of water.
Keisu said that while the components used in boat batteries are similar to those used in EVs, they must be more powerful and durable. The CEO also said Stockholm provided the ideal location for producing electric boats due to its supportive environment, adding that the access to talent, capital and wider support was remarkable.