Norway failing to exploit rare earth potential, expert warns

Norway is squandering its rare earth mineral wealth and doing far too little to develop it, according to Telemark county geologist Sven Dahlgren.

“The measures taken by the prime minister and the government are far too feeble for what is needed,” Dahlgren told Dagbladet. He argues that Norway’s mineral resources—“the nation’s inherited silver”—receive insufficient political and industrial attention despite their strategic importance.

“This is on the agenda when China’s Xi Jinping and Donald Trump meet, yet we may be sitting on a joker here, and it gets almost no attention,” he said.

Rare earth elements are essential for modern technology, from weapons and semiconductors to electric vehicles. China dominates the market, controlling 60% of global extraction and an even larger share of processing, giving it leverage over Western production. Last spring, Beijing restricted rare earth exports in response to US tariff threats, forcing a rapid retreat by the Trump administration.

Fensfeltet in Telemark, where Dahlgren has worked since the 1980s, holds Europe’s largest known rare earth deposit—80% larger than initially estimated. A small county grant in 2015 allowed him to confirm its significance after years of advocacy.

Industry advisor Bård Bergfald echoes the criticism, noting Norway spends 270 billion kroner on new oil production this year but “nothing on minerals.” He points out that in comparable countries like the US, Australia, and Japan, the state typically covers half the cost of developing such resources. In Norway, the state subsidises 78% of new oil production but almost none of mineral projects like Fensfeltet.

In June, the Storting agreed only to consider establishing a state mineral company or fund. Dahlgren stresses that developing these resources could create jobs and secure domestic industry and defence technology.