MINEX Forum

Tag: Solvay

  • Solvay Signs Two US Supply Deals to Boost Rare Earth Processing Capacity in France

    Solvay Signs Two US Supply Deals to Boost Rare Earth Processing Capacity in France

    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.

  • Solvay to Supply Europe with Rare Earth Metals for EVs and Wind Turbines from French Plant

    Solvay to Supply Europe with Rare Earth Metals for EVs and Wind Turbines from French Plant

    Belgian chemicals group Solvay has announced plans to supply Europe with rare earth metals for permanent magnetsused in electric vehicles (EVs) and wind turbines, as part of a strategy to reduce reliance on China. The company plans to commence regular production at its refurbished plant in La Rochelle, France, by early 2025, aiming to meet 30% of Europe’s needs for permanent magnets by 2030. This facility is unique in Europe for its ability to process both light and heavy rare earth materials at an industrial scale. Solvay’s CEO, Philippe Kehren, highlighted the strategic shift toward European production, anticipating a tripling in demand for these materials by 2035. Solvay is in discussions with major European car manufacturers and turbine makers, as well as the French government, to secure support across the entire value chain. This move aligns with new EU regulations that aim to bolster the continent’s self-sufficiency in critical materials, targeting a reduction in dependence on Chinese supplies, which currently cover about 95% of the EU’s rare earth needs. Solvay intends to source 30% of the materials for its La Rochelle plant locally, by recycling end-of-life rare earth metals from motors in Europe.

     

  • Solvay’s La Rochelle Plant Aims for Revival Amid Europe’s Green Energy Push

    Solvay’s La Rochelle Plant Aims for Revival Amid Europe’s Green Energy Push

    Four decades ago, a rare earth processing plant on France’s Atlantic coast was one of the largest in the world, producing materials essential for color televisions, arc lights, and camera lenses. Today, its owner Solvay is striving to rejuvenate the La Rochelle plant after years of reduced output, aligning with Europe’s efforts to enhance mineral production vital for the green energy transition.

    The factory’s 76-year history highlights the challenges faced by Europe and the United States as they attempt to reverse the significant shift of rare earth processing to China that began around 25 years ago. China emerged as a dominant force in rare earths, a group of 17 minerals, by offering lower prices than the West, bolstered by government support and often disregarding environmental concerns that accompany the sector’s toxic waste production. Recently, China has intensified sustainability efforts and closed polluting operations.

    In the 1980s and 1990s, the La Rochelle plant’s output set the global benchmark for rare earth prices. Today, it produces 4,000 metric tons annually of separated rare earth oxides, a small portion compared to China’s 298,000 tons last year. Solvay’s current focus is on processed rare earths for auto catalysts and electronics, not the permanent magnets essential for electric vehicles (EVs) and wind energy. However, Solvay plans to start producing these by next year.

    “We at Solvay want to put rare earths for permanent magnets back on the map in Europe,” said An Nuyttens, president of Solvay’s division that produces rare earth products. “It’s not an easy one; it’s going to be step by step, as the chain from mining up to magnets production needs to be built.”

    The 160-year-old chemicals group aims to eventually supply 20% to 30% of Europe’s separated rare earths demand for magnet production, but Nuyttens noted this target might not be achievable until after 2030, with no specific date given.

    Under a new EU law effective since May, the bloc has set ambitious 2030 targets for domestic production of critical minerals necessary for the green transition: 10% of annual needs mined, 25% recycled, and 40% processed domestically by the decade’s end. Rare earths, crucial for permanent magnets that power motors in EVs and wind energy, are among the most important critical minerals. EU demand is predicted to increase sixfold by 2030 and sevenfold by 2050.

    However, according to production forecasts and interviews with over a dozen industry executives, consultants, EU-funded officials, industry groups, and investors, the EU will struggle to meet most of its rare earth goals. Missing targets in the Critical Raw Material Act (CRMA) could hinder the bloc’s zero-carbon ambitions and increase dependence on China amid heightened geopolitical tensions with the West. China currently accounts for 98% of EU rare earth permanent magnet imports.

    EU Commission spokesperson Johanna Bernsel stated that while they couldn’t confirm the Reuters findings, the bloc would do its best to support projects that help meet CRMA goals. “Projects in Europe will benefit from a streamlined permitting process, as well as coordinated support for accessing de-risking financing tools and matchmaking with downstream users,” Bernsel said.

  • European battery companies call on EU for more support

    European battery companies call on EU for more support

    The companies said the European Union’s current plans and funds were not enough for the necessary investments in the bloc’s battery industry for electric vehicles and renewable power storage – a pillar of the shift to green technologies.

    “Today China controls not only large shares of cleantech manufacturing but also 50-90% of the critical minerals processing capacity needed for those, as well as many global resources,” said the letter to Commission President Ursula von der Leyen, signed by 16 companies and organisations.

    They included miner Rio Tinto, chemicals group Solvay and battery materials makers Umicore and Northvolt.

    “The U.S. is fast catching up with its mammoth investment package under the Inflation Reduction Act, while Europe’s investment climate has been further worsened from the ongoing Ukraine conflict,” the letter added.

    The companies called for a European Critical Minerals Fund, which would operate on an EU level and which could directly finance companies.

    They also urged the commission to expand its innovation fund with targeted support for the critical minerals sector.

    Existing EU funding streams are “a patchwork of insufficient, uncoordinated and complex schemes” which focus mostly on research and development, they said.