Sustainable and independent industrialization, powered by green energy, is top of mind for all of Europe. One European country at the top of the world—with vast forests, the third largest territory but only the 10th largest population—is best positioned to help. As a passionate advocate for sustainable development and a champion of my country’s innovative spirit, I am convinced that Sweden holds the key to Europe’s green future.
The global explosion of artificial intelligence and large language models, the promise of GenAI, and just-over-the-horizon technologies like nuclear fusion and quantum computing, seem destined to overwhelm the goals the European Union has set for itself toward creating a zero-carbon economy. Meanwhile, a shifting geopolitical outlook makes it even more imperative that the EU develop its own capacity to achieve independent growth. This naturally includes non-EU countries such as Norway that are part of the European Economic Area.
Multilateralism everywhere is on the ropes—the rising global world order is tending toward volatile, transactional relationships that could leave Europe at a disadvantage. The EU currently uses about a quarter of the world’s raw materials but produces only about 3%. Renewable energy sources have been growing but still represented only 24.5% of the EU’s energy use in 2023, according to the European Environment Agency.
The EU has set a minimum target for renewables at 42.5% by 2030. That goal, according to the European Environment Agency, would “demand doubling the rates of renewables deployment seen over the past decade and a deeper transformation of the European energy system.” Skyrocketing energy consumption projections of data centers are expected to more than triple by 2030, further straining the region’s capacity.
In this dark outlook, Sweden presents a beacon of hope. Rich in natural resources, green-energy infrastructure, innovation experience and technological expertise, the country remains largely underappreciated and under-utilized.
Sweden’s Appeal
Sweden is already one of Europe’s largest net exporters of electricity, with 98% of its domestically produced electricity being fossil fuel free—a stark contrast to much of Europe. Mostly this comes from hydropower and nuclear, but biofuels, waste-to-energy systems and heat pumps are also widely used. Sweden is also a major supplier of the world’s forestry products, including supporting renewable industries such as biofuels and sustainable packaging.
Sweden also currently provides nearly all the EU’s iron ore, vital for construction and clean energy, and a significant share of its zinc and copper, crucial for renewable energy technologies, and it is home to Europe’s largest copper mine, Aitik in Gällivare, operated by Boliden.
In addition, it has the ability to address the EU’s growing need for rare earth metals. These are used in a wide range of consumer, commercial and industrial applications, including wind turbine magnets, batteries and electric vehicle motors—technologies essential to the green transition. In her 2022 State of the Union, European Commission President Ursula von der Leyen said, “Lithium and rare earth metals will soon be more important than oil and gas.”
In March 2024, the European Commission adopted the Critical Raw Materials Act, a regulatory framework for safe and sustainable production. The commission is making progress under the CRMA to enhance the region’s raw material independence, and three strategic projects in Sweden were recently selected for investment and development. While a good step in utilizing the full breadth of opportunities across the EU, more still needs to be done to yield Sweden’s true potential.
By far the world’s leading producer of rare earth metals, China supplies both the EU and the US. China is also the hub for the processing of rare earth metals once they are mined, including 91% of refining, 87% of oxide separation and 94% of magnet production, according to leading European thinktank CEPS.
Sweden thus can offer Europe hope both to meet its renewable energy commitments and to rebalance its reliance on China. But it requires the EU to commit to a major program of investment.
Rich in natural resources, green-energy infrastructure, innovation experience and technological expertise, the country remains largely underappreciated and underutilized.
Resources
Europe’s largest copper mine, Aitik, is located in the northern Swedish town of Gällivare. Recently, a large deposit of rare earth metals has also been identified in Sweden, near Kiruna, just north of the Arctic Circle, at a site called Per Geijer.
Sweden’s state-owned LKAB says it is beginning plans to mine the site and that scaled production and processing of the mine could supply as much as 18% of the EU demand for rare earth metals. The EU must also build its own processing infrastructure from scratch. The project is expensive and can incur serious environmental impact if not handled correctly.
“The capital costs to build a refinery outside of China are enormous,” Matt Sloustcher, a spokesperson for MP Materials of California, told The Wall Street Journal. “The economics only work when you can produce a high-quality concentrate or carbonate at scale.”
Yet it is precisely because the obstacles generally are so large that Sweden begins to look like the EU’s best bet.
Expertise
For over a century, the country has quietly fostered advanced knowledge in product development and resource-efficient processes. It is consistently ranked in the top three nations by the Global Innovation Index and the Bloomberg Innovation Index ranks it fifth in the world. The EC’s Innovation Scoreboard listed the country fourth in terms of R&D spending.
The legacy of Swedish innovation goes back at least to Ericsson, the now multinational telecoms and networking business founded in the 19th century and still headquartered in Stockholm. In 1846, the country created a program of mandatory education that fueled its dramatic shift from an agricultural to an industrial society.
In the 1990s—still early days for the internet—a cutting edge broadband network and a subsidized computer lending program helped connect the country and develop digital literacy. Mobile service has been in place across the entire country since 2023. In 2016, the government Sweden committed to connect 98% of all of the country’s households to the latest high-speed internet by this year, with public funding for rural areas. All of that service is powered by the country’s predominantly grid of renewable energy.
Today more than 3% of the country’s GDP is invested into research and development. Stockholm is now second in the world after Silicon Valley in terms of technology hubs per capita. The nation’s Kista Science City is the largest ICT cluster in Europe. Skype, Spotify, King, Mojang, Klarna and Truecaller are all Swedish-born international tech companies of recent vintage.
That background—innovation, sophisticated technology and a skilled workforce—means Sweden can play an outsized role in the EU’s transitioning value chain, managing green production to benefit decarbonization efforts. Increased innovation in energy storage, grid solutions and next-generation nuclear clearly shows that Sweden has an opportunity to lead.
It is precisely because the obstacles generally are so large that Sweden begins to look like the EU’s best bet.
Value Plan
As a strategic approach for the EU and EU enterprise, investment in Sweden’s natural resources, green-energy experience and technological expertise would require major commitment. But the results are clearly worth it.
- International competitiveness: Sweden’s resources and expertise position can expand Europe’s position as a leader in green manufacturing.
- Resource independence: Development of Sweden’s resources sustainably reduces the EU’s reliance on international imports, enhancing regional stability.
- Sustainability: The development of resources to feed the expected growth in energy demand for data centers need not endanger Europe’s ability to achieve its climate targets. Investment in Sweden’s green energy infrastructure, could grow the region’s capacity responsibly.
- Economic resilience: Strategic collaboration with Sweden is investment in the EU itself, furthering a stable resource base and sustainable economic growth within the region.
Conclusion
It is time for the EU to recognize and invest in Sweden’s potential. While supporting Europe’s goals, proper coordination on resource use will bolster Sweden’s ability to do even more, exporting more electricity, more rare earth metals and improving the conditions for technology startups and the operations of established companies. As energy needs currently stand, growth in imported fossil fuels and rare earth metals put the EU into a box of dependency, subject to the changing tides of geopolitical pressures. Only by working together can we achieve Europe’s goals of economic resilience, security, and innovation.
Policymakers must prioritize funding for renewable energy projects, rare earth metal processing facilities, and innovation hubs in Sweden. The Swedish government should also enhance support for these initiatives, ensuring that Sweden’s advancements benefit the entire European Union. Additionally, they should work to reduce bureaucratic hurdles and increase clarity on prioritizations to facilitate swift and reliable investment decisions by companies. We must prioritize collaboration, with Sweden and Swedish companies playing a central role in Europe’s green transition.
By working together, we can build a secure, sustainable future for Europe.
[Europe’s largest known deposit of rare earth elements was recently found near Kiruna, Sweden, shown in the photo above, which already hosts the world’s largest underground iron ore mine.]