Europe's largest rare-earth mine, Norway's Fensfeltet, struggles to begin production

Despite owning Europe’s largest rare-earth deposit, Norway has not yet brought the Fensfeltet mine into production due to hurdles involving procedures, funding and environmental concerns. New calculations suggest the project could be significantly larger than previously estimated, but the path to output remains uncertain.

Fensfeltet’s scale and reserve estimates

Consulting firm WSP calculated in early March that the Fensfeltet mine, located about 150 km southwest of Oslo, could hold up to 15.9 million tonnes of rare-earth oxide. The estimate is 81% higher than the initial figure, reinforcing that Fensfeltet is the largest rare-earth deposit in Europe.

The scale is far larger than Per Geijer in Sweden, previously identified by LKAB as the largest deposit in this group, with 2.2 million tonnes of rare-earth oxide.

Norwegian Geological Survey geologist Nolwenn Coint said additional drilling rounds are needed to determine the exact reserves. She noted that while the deposit is large globally, its rare-earth composition is behind regions currently mined in the United States (Mountain Pass), Australia (Mount Weld) and China’s Bayan Obo.

Neodymium and praseodymium content

At Fensfeltet, 19% of the oxide ore is neodymium and praseodymium (NdPr). These metals are used in permanent magnets for electric vehicles, wind turbines, electronics and the defense industry.

Supply risk and timeline for production

Alf Reistad, CEO of Rare Earths Norway (REN), which holds the rights to operate the project, said the NdPr metals are among those the European Commission identifies as being at high risk of supply. Speaking to Reuters, he warned that Europe must move from discussion to action.

Reistad said REN could begin production by late 2031 and reach NdPr output of 800 tonnes by 2032. He said this would meet about 5% of the EU’s demand for these minerals.

He added that while REN has mining licenses, it still needs operating permits and “risk mitigation mechanisms” to improve price competitiveness versus Chinese supply.

Reistad warned that if the Norwegian government, the European Commission and EU member states do not act urgently, the resources—described by Brussels as essential raw materials—may never be mined.

Environmental concerns and proposed “invisible mine”

The plan to develop Fensfeltet also faces environmental concerns. Coint said the deposit sits at the root of an ancient volcanic complex made of carbonate rock, which is more soluble for extracting rare earths.

REN proposes an underground approach, described as an “invisible mine.” Ore would be extracted through vertical shafts, milled and transported underground via a conveyor belt several kilometres long. After separation of rare-earth elements, REN says at least 60% of the waste would be pumped back into the mine.

However, experts say the proposed surface infrastructure site puts at least 78 plant and animal species at risk, including beetles, butterflies, amphibians, centipedes, fungi and lichens.

Calls for government intervention

Some environmental groups are urging the Norwegian government to intervene, arguing that local authorities lack resources to assess potential damage and may weigh the site with financial interests in mind rather than evaluating alternatives.

Truls Gulowsen, president of Norway’s Nature Conservation Association, said the project has positives, including commitments to minimize ecological impact and to target essential minerals. He warned that alternative options must be considered before accepting significant biodiversity damage, adding that rushing could delay next steps for a long time.

REN spokesperson Tor Espen Simonsen acknowledged the dilemma: moving too quickly could lead to prolonged legal disputes, while spending too long on additional reports and studies could prevent the project from starting. The company said governments should intervene and treat Fensfeltet as a priority project.

Europe’s rare-earth dependence and policy targets

China supplies 98% of Europe’s demand for permanent magnets. EU manufacturers became aware of vulnerabilities after Beijing restricted exports in spring 2025, before lifting restrictions in November.

Europe has no active rare-earth mine. The bloc aims to be self-sufficient for at least 10% of its rare-earth demand by 2030. Reistad said the Norwegian project could help reduce imports, meeting up to 30% of the EU’s rare-earth demand.

Permitting, funding and international competition

Reistad said European mining projects typically take 20 years to become operational. He proposed two solutions: accelerating permitting and providing financial support if the EU does not want to be caught between China and the United States.

He pointed to U.S. investment of around $2 billion in two American rare-earth mining and processing companies, along with a U.S. pledge to guarantee prices for the first 10 years. He said China has supported the sector since the 1980s and is capable of controlling global rare-earth prices.

“If we don’t do the same, we’re like attending a sporting event where everyone else uses doping, except us,” Reistad said.