A new industrial-scale rare earth oxides separation plant is scheduled to start up soon in Norway. Located in Heroya, the plant belongs to REEtec which has been operating a demonstration plant at the site since 2019 and represents a scaling up of the separations technology it has been developing. The new facility is closely aligned with Swedish national minerals company LKAB which is developing a significant rare earths property.
Together the two companies are focused on establishing a new rare earths supply chain in Scandinavia. As earlier reported in Magnetics Magazine, LKAB recently discovered what is believed to be Europe’s largest deposit of rare earth metals.
REEtec, headquartered in Oslo, recently has been installing production equipment into the plant and is preparing for the start of production. “Our construction is going very well, and start-up commissioning has started,” reported David O’Brock, Commercial Director, to Magnetics Magazine on August 15. “We will be ready for raw material at the beginning of 2025.”
REEtec has worked with its proprietary separation technology since 2008 and has matured it for industrial production. The company has developed a proprietary technology for production of neodymium and praseodymium. Commonly referred to as ‘NdPr’, the two rare earth elements are essential in the manufacturing of most electric motors, wind turbines, robots and pumps.
The process combines high efficiency and competitive cost structure with impressive environmental friendliness. An important element in the process is that virtually all consumables are recovered and re-utilized. The energy demand is also very low and electricity consumption is based 100 % on hydroelectric sources from Norway’s green grid. REEtec’s technology is quite flexible towards feedstock, notes the company. This allows it to take in materials from various sources with varied ratios between the elements including the recycling of end-of-life magnets while still producing pure oxides that meet the needs of the magnet market.
Meanwhile, the company has been staffing up to support the new operation. In a recent recruitment process, it strengthened the team with five key technical positions: Assistant Production Manager, HSE Manager, Laboratory Manager, Quality Manager and Maintenance Manager.
“We are very pleased to have been able to attract very competent and experienced technical managers to fill these positions,” said Sigve Sporstøl, CEO of REEtec, about the new staffing. “Our team is our most important asset, and we are dependent on being perceived as an attractive employer. The interest in REEtec shown by both the number and the quality of the applicants,has been very encouraging, he noted. The new hires will all be involved in planning and managing key parts of the production plant. In the initial phase, they will work on establishing the relevant procedures and routines, as well as planning, installation and testing the equipment in the new factory.
Funds for the new operations came in 2022 when REEtec closed a capital raise of NOK 1200 million (EUR 115 million). Through the financing round, LKAB, the international mining and minerals group, became become the largest shareholder in REEtec. The Norwegian State’s climate investment company Nysno and energy and commodity groups Mercuria and TechMet also participated with new equity alongside existing shareholders where the REEtec founders, Scatec Innovation, is included.
“LKAB plans to extract rare earth elements as a by-product from our iron ore mining. Together with REEtec, we can create the basis of a strong and sustainable Nordic value chain for rare earth metals,” said Jan Mostrom, LKAB’s President and CEO. “Together with REEtec, we can create the basis of a strong and sustainable Nordic value chain for rare earth metals.”
Positioned as the company’s first plant for separating rare earths, the new facility is designed to provide annual production of 720 tons of NdPr oxide which represents approx. 5% of the estimated demand in the EU. REEtec’s proprietary technology can reduce CO2emissions by 90% compared to other leading suppliers, as virtually all consumables are recovered and re-utilized in the process. A second plant has been planned to be built in Heroya in 2026, fed partially from LKAB’s mining operations, expected to be available from 2027.
REEtec is a privately owned company established in 2008 by Scatec Innovation AS, an investment company focused on developing and implementing new technology within renewable energy and advanced materials. Located in Oslo, it is still the second largest shareholder at 19.6%. LKAB holds 33.7%. For more info, see www.reetec.no and www.lkab.com.
