Chemicals group Solvay has secured two new supply agreements with US magnet manufacturers as it accelerates efforts to scale up rare earth processing at its La Rochelle plant in France. The company, one of the few outside China capable of performing complex rare earth separation, began limited processing in April and has been seeking commercial commitments from industry and government partners to expand production.
Solvay will supply neodymium, praseodymium, dysprosium and terbium (NdPr and DyTb) to Texas-based Noveon Magnetics under the first agreement. These elements are essential for neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, defence systems, consumer electronics, and wind turbines. Noveon began commercial production of sintered NdFeB magnets in 2023.
A second agreement with Permag covers the supply of samarium oxide, which will be converted into samarium metal by UK-based Less Common Metals. Samarium-based magnets can withstand extremely high temperatures and are widely used in defence and nuclear applications.
Solvay CEO Philippe Kehren said the initial deliveries involve limited volumes but noted that the La Rochelle facility could rapidly increase output. Production of NdPr and samarium oxide will begin shortly, while DyTb output is expected to start in 2026.
Kehren also indicated that Solvay is exploring the possibility of building a rare earths processing plant in the United States, where financial support for strategic materials is stronger than in Europe. Company executives said US customers are already willing to sign long-term contracts, while European buyers are still moving more slowly despite recognizing the need for supply chain independence.
