Sweden moves from nuclear push to large-scale green steel transition

The Swedish Government has proposed lifting the ban on uranium mining and limiting municipalities’ veto, presenting a legislative proposal in June 2025 for entry into force on 1 January 2026.

• Main action & rationale: The proposal would reopen uranium extraction to support nuclear expansion, with national deposits theoretically able to cover the need of future reactors (~2,000 tonnes of natural uranium per year); the change aims to remove the current ban and limit municipal veto rights, but faces strong local opposition and unresolved issues under the Environmental Code.
• Background & project details: Sweden exported over €5 billion in metals/minerals in 2024 (down 12% year-on-year); iron ore production fell to 80 million tonnes in 2024 (‑5%) but still accounts for 89% of EU iron ore. Major industrial projects include HYBRIT (SSAB, LKAB, Vattenfall) targeting commercial-scale fossil-free steel by 2026 and a new Luleå plant targeting green steel by 2035, while Stegra plans integrated green steel output starting end-2026 and aims for 5 Mt by 2030. LKAB foresees investments of €13–36 billion over 15–20 years, and the full transition could require ~70 TWh/year of electricity. A Kiruna discovery contains >1 million tonnes of rare-earth oxides, with production of cadmium-free fertilizers from 2027.