Executive Summary
Key Takeaways for Decision Makers
The global demand for critical raw materials (CRMs) is increasing rapidly, primarily because these materials are essential for the development and deployment of energy transition technologies, such as batteries for electric vehicles (EVs) and magnets for wind turbines. Despite this rising need, Europe’s supply chains remain fragile due to a lack of significant domestic production of CRMs. This vulnerability is exacerbated by the fact that CRM processing is predominantly concentrated in China, which presents severe supply risks for European manufacturing sectors.
The Nordic region possesses substantial mineral deposits, a robust innovation ecosystem, and access to affordable clean energy, all of which provide a solid foundation for securing the European supply of CRMs. However, efforts to scale up domestic production capacity face notable challenges, particularly related to permitting processes and economic viability. These obstacles discourage private investment in the sector. To overcome these challenges and unlock the full potential of the Nordic region, government intervention is necessary to accelerate deployment.
Strategic recommendations to accelerate Nordic CRM mining
The Nordic region needs a more coordinated and efficient approach to advance mining and processing of CRMs. The barriers to progress are complex and interconnected, yet each can be clearly addressed through targeted actions. Among these, permitting challenges are particularly acute: complex, uncertain, and lengthy approval processes impose significant risks and deter investments. Streamlining and harmonising permitting procedures across the Nordics as well as prioritising projects essential for the energy transition and defence sector, would help to create a more predictable and attractive environment for investors.
Funding is another crucial element. Significant project risks arising from elevated uncertainty erode investor confidence and limit the availability of capital. The establishment of a public Nordic investment fund dedicated to mining and metals projects could de-risk investments and stimulate private sector engagement, supporting the scaling up of CRM supply throughout the region.
Market volatility and manipulation also pose significant challenges. Investor hesitation is heightened by artificial price swings, frequently orchestrated by dominant market players, as well as by geopolitical disruptions that can destabilise prices for critical minerals. Developing price stabilisation mechanisms – such as price guarantees or offtake agreements
Contract where a buyer agrees to purchase all or a substantial amount of a seller's future production, often negotiated before a project is built.
Furthermore, effective policy coordination and collaboration across the Nordic region is essential. Fragmented approaches limit the effectiveness of individual countries, diluting collective influence at the EU level and hampering the region's ability to address investment barriers. By aligning policy objectives and permitting standards, advocating together for strategic support and price stabilisation, and promoting cross-border cooperation, Nordic nations can create the foundation for long-term success in CRM mining.
Area | Permitting Processes | Project Funding | Price Volatility |
|---|---|---|---|
 |  |  | |
Challenge | Uncertain and lengthy permitting processes hinder development of projects and disincentivise investment. | Difficult to attract funding for mining developments due to project risks undermining investor confidence. | Volatile market prices with artificial price hikes and dumps by market leaders discourage investment. |
Nordic value-add | Aligned Nordic permitting processes can reduce uncertainty for investors exploring cross-border projects. | Public Nordic investment fund for mining and metal projects can de-risk investments and attract more private capital. | Together, the Nordics have a stronger voice and could induce change on EU-level and promote price stabilization mechanisms such as e.g. floor prices or offtake agreements. |
Industry voices | “Policymakers need to streamline permitting and support strategic projects for green transition and defence.” – Mine & Refinery Developer | “Capital and financing is a bottleneck for the mining industry in general in the Nordic countries.” – Exploration Company | “Price guarantees can protect producers from aggressive, politically driven price cuts by foreign competitors.” – Mine Operator |
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Opportunities for Nordic cross-border collaboration in mining and minerals
The Nordic region presents substantial opportunities for cross-border collaboration within the mining and minerals sector. Industry experts highlight potential to advance extraction and refining processes, enhance the utilisation of waste streams, and co-develop mining solutions for the green and digital transitions.
The Nordic region can unlock significant value by leveraging complementary national strengths – such as Sweden’s and Finland’s advanced mining industries and Norway’s processing capabilities – to build integrated, cross-border value chains. CRMs and emerging sectors like direct reduced iron, rare earth elements (REEs), and graphite represent key growth areas. For example, combining Norwegian natural gas with Swedish iron ore expertise could enable the production of direct reduced iron with up to 60-90% lower CO₂ emissions
Industry expert interview and Peder Qvale, Planene om verdens mest miljøvennlige jernverk kan bli skrinlagt, Teknisk Ukeblad. (5 September 2013), https://www.tu.no/artikler/planene-om-verdens-mest-miljovennlige-jernverk-kan-bli-skrinlagt/234481
Processing and utilising side streams, such as slags and tailings, for metal recovery is an emerging but underdeveloped opportunity. By adopting innovative technologies and forming joint ventures, the Nordics could establish a circular material supply chain, integrating resources from urban mining and primary waste streams. The main barriers are not technological but structural: market and policy misalignment, indirect subsidies favouring primary extraction, and regulatory hurdles. Feedstock supply issues and pricing practices – where miners set tailings prices high – further constrain commercial recycling initiatives. Overcoming these challenges will require policy reform and financial models that make recycling economically viable.
Enhanced collaboration among Nordic OEMs in electrification and digitalisation – covering EVs, artificial intelligence, and digital solutions – could attract component suppliers and foster joint technology development. This would strengthen both individual companies and the region’s global competitiveness. Yet, competitive dynamics across business segments often impede cooperation. Building trust and shared objectives will be essential to unlock synergies and position the Nordics as leaders in next-generation mobility and digital innovation.
Area | Opportunities | Challenges | Industry voices |
|---|---|---|---|
Cross-Border Extraction and Refining | Nordics can leverage complementary strengths – Sweden’s and Finland’s robust mining sectors and Norway’s processing competence – to create cross-border value chains for extraction and refining. Greatest potential for cross-border value chains notably in CRMs and other developing value chains; interviews specifically highlight potential for direct reduced iron, REEs and graphite. | Fragmented collaboration due to national silos and limited cross-border cooperation hinder the realisation of integrated value chains and economies of scale. Harmonisation of regulations and political ambitions could incentivise the industry and investors to pursue Nordic joint ventures and integrated projects. | “Green hydrogen is too expensive today; Norwegian natural gas and processing expertise with Swedish iron ore could produce direct reduced iron with 90% less CO₂ emissions.” – Mining Company “If we all start thinking about the Nordic region as one region and stop competing amongst ourselves, we will achieve a lot.” – Industry Expert |
Waste Stream Utilisation | Nordic potential to develop circular material supply, building on technological competence across the value chain and pooling supplies from urban mining and primary waste streams. | Recycling challenge is not technology readiness, but market and policy alignment – indirect subsidies and taxes favouring primary extraction over recycling, feedstock supply and regulatory barriers disincentivises circular value chains. Financial disparity between miners and recyclers: requested prices from miners for e.g. tailings are often too high for recyclers to develop commercially viable products from. | “Most companies only focus on 2–3 materials; we should learn from the Pulp & Paper industry and enable startups to access waste streams and create new products.” – Industry Expert “Significant potential exists in processing and utilising side streams (slags, tailings, etc.) for metal recovery, but the area is underdeveloped and could benefit from new technologies and JVs.” – Mining & Refining Company |
OEM Electrification and Digitalisation Cooperation | Nordic collaboration on BEV, AI and digital solutions can benefit all stakeholders by attracting component suppliers and developing joint technologies and help increase global competitiveness. | Lack of collaboration due to competitive environment across several business areas. | “Nordic equipment OEMs could collaborate further to develop battery solutions for mining equipment and counter Chinese competition.” – Equipment OEM |
Note: Quotes are paraphrased. Source: Business Sweden interviews and analysis