The decision means that the company Talga AB now has a permit to extract graphite in the area Nunasvaara Södra K nr 1, which is located in the municipality of Kiruna.
The mine has, according to the EU's regulation on critical raw materials, been identified as a "strategic project", according to the government.
"The graphite that Talga AB plans to produce is a key material in the manufacture of batteries and the green transition to a fossil-free society", says Minister for Energy and Business Ebba Busch (KD) in a comment in the press release.