The European Union faces a fundamental contradiction in its push for domestic rare earth mining. While Brussels aggressively funds projects deemed critical for its green transition and industrial policy, strict environmental and Indigenous rights laws stand as immovable obstacles to swift development. This is vividly illustrated by LKAB’s Per Geijer mine in northern Sweden—a flagship project now entangled in legal hurdles despite enjoying “strategic project” status under the EU’s Critical Raw Materials Act (CRMA).
The Strategic Push for Autonomy
The EU aims to reduce reliance on China for rare earth materials essential for electric vehicles, wind turbines, and defense. To achieve this, the CRMA mandates that at least 10% of strategic raw materials be mined within the bloc by 2030, with 40% processed domestically. Approximately three billion euros in EU funding has been earmarked for mining, processing, and recycling initiatives in regions like northern Sweden, prioritizing projects like Per Geijer.
The “strategic project” designation lowers investment risk, grants access to EU-backed finance, and fast-tracks permitting on a national level. However, this political and financial momentum clashes directly with stringent legal requirements.
Unbreakable Environmental Regulations
LKAB must secure a full environmental permit under Sweden’s Environmental Code, one of the EU’s strictest. This requires exhaustive impact assessments on water, biodiversity, pollution, noise, and climate—all subject to review by the Land and Environment Court. These processes can trigger years-long delays and legal appeals, even for projects Brussels deems essential. The EU’s Environmental Impact Assessment Directive, Habitats Directive, and Birds Directive protect endangered species and Natura 2000 sites, offering no exceptions for industrial expediency.
Indigenous Rights as a Legal Constraint
The Per Geijer deposit overlaps with traditional Sami reindeer-herding lands, triggering obligations under Swedish law, the European Convention on Human Rights, and EU laws to protect minority rights. Safeguarding standards like free and informed consent proves nearly impossible under the pressure to fast-track EU-funded mining. This creates a legal tension that undermines the CRMA’s call for permitting acceleration.
The “Green Deal Paradox”
Kiruna now exemplifies what researchers call the EU’s “Green Deal paradox”: climate-driven industrial ambition clashes with strong legal protections for land, biodiversity, and Indigenous culture. The EU is simultaneously funding projects its own laws can halt indefinitely.
A Structural Clash
EU institutions recognize the urgency of domestic rare earth mining, with demand expected to surge by over 500% by 2030. Yet, the EU’s legal framework prioritizes precaution, environmental protection, and rights-based governance, giving opponents of new mines strong legal leverage.
The outcome of the Per Geijer project will demonstrate whether the EU can reconcile its funding-driven push for strategic autonomy with its own legal standards. Right now, Kiruna exposes a critical problem: the EU is accelerating mining projects that its own laws are designed to slow down.
