How Spain’s vast rare earth supplies could be a game changer for the EU

Has Spain discovered reserves that could revolutionise its economy and reduce technological dependence on China? 

Quite possibly. Rare earth minerals have gained headlines in recent weeks. More specifically, they’ve become poker chips on the geopolitical stage and as part of a potential peace deal between Russia and Ukraine.

Rare earth minerals, a term generally used to group 17 chemical elements, are essential for the manufacture of electronic devices, renewable energy and military technology.

Ukraine has vast deposits of rare earth minerals, and according to reports, US President Trump wants access to them in exchange for support in the war against Russia and potentially ending the conflict.

These minerals have in recent weeks gone from being a little-known resource to a strategic asset with not only the power to structure peace deals, but, in the longer term, even potentially provide Spain (and by extension, Europe) a strategic pivot away from China.

In Spain, interest in rare earths has also been growing in recent years following discoveries that position the country as a potential major player in the market. 

Several regions across the country have significant reserves, something that could provide significant supplies to Europe and help reduce dependence on China. However, the supplies have also opened intense debate on their exploitation and the economic, environmental and political implications involved. 

With international relations fraught in the 2020s and traditional alliances breaking down, Europe is increasingly searching for ways to become self-sustainable in terms of energy and security. Spain’s rare earth minerals could play a big role in this. 

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Rare earth deposits in Spain

There are several sites across Spain. Reserves have been found in Campo de Montiel, in the province of Ciudad Real, and the site has become a key point in rare earth research in Spain for minerals such as monazite, cobalt, cesium and neodymium. The mining company Quantum Minería has identified deposits with the potential to produce 2,100 tonnes per year, which could meet a staggering 33 percent of European demand. 

However, the project faces strong opposition due to its environmental impact, especially the possible impact on protected ecosystems.

The western region Extremadura has also emerged as one of the areas with the greatest potential for rare earths. In the province of Cáceres, studies have detected deposits in Los Ibores and Campo Arañuelo, and studies are being carried out on the viability of lithium and tantalum exploitation. In Alía, sedimentary monazite rich in europium has been identified, while in the province of Badajoz, municipalities such as Burguillos del Cerro, Barcarrota and Almendralejo could harbour significant reserves of lithium, tantalum and niobium.

The areas of Aliste and Sayago in Zamora have also been identified as areas with significant rare earth supplies. On the border with Salamanca, in the Domo del Tormes, supplies of tantalum, lithium and cerium, essential elements for the manufacture of batteries and advanced technology, have also been found.

In Galicia, in northwestern Spain, the provinces of Lugo (monazite), Orense (niobium and tantalum) and Pontevedra (lithium, monazite, niobium and tantalum) also have deposits of rare earths that could be exploited.

Andalusia is one of the regions of Spain most advanced in its rare earth research to date. In 2024, the southern region presented the first map of critical minerals. Andalusia is one of the world leaders in the production of strontium, though it remains far behind China. According to data from the Geological and Mining Institute of Spain, China and Spain are the top producers of strontium (celestine) ore in the world.

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Is this a game changer for Spain and the EU?

Potentially, yes. But it’s probably too early to say. The economic impact on the mining areas would be significant, and would also likely give a boost to the Spanish economy more widely, but the environmental challenges that would come with mining, especially pressure from protest groups, could limit potential. 

Although Quantum Minería proposes to temporarily remove topsoil and restore, as well as to avoid using polluting chemicals and minimise the impact on local agriculture, any excavation will likely generate significant backlash.

The impact on water and biodiversity in the surrounding areas are also important factors to consider as possible.

However, in terms of the political and economic possibilities, these reserves are potentially very significant. 

That the site in Ciudad Real could cover up to 33 percent of European demand certainly makes Spain a potential player in the market and geopolitical world. 

But it will depend on the political and economic decisions taken in the future. Balancing foreign policy with domestic environmental concerns will be complex, but with the potential boon to the Spanish economy, we may be hearing more about rare earth minerals in Spain in the coming years. 

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