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| Solvay |
La Rochelle facility begins NdPr oxide output amid rising demand and geopolitical tension
Partnerships with recyclers and refiners enhance rare earth feedstock resilience
Solvay has commenced refining magnet-grade neodymium and praseodymium oxides at its La Rochelle plant in France. This move significantly boosts Europe’s independence in rare earth magnet supply. The project marks Solvay’s first step into advanced rare earth oxide (REO) production for permanent magnets, which are essential for electric vehicles, wind turbines, and defense systems.
The facility, which dates back to 1948 and came under Solvay ownership in 2011, historically specialized in cerium processing. It served sectors such as automotive catalysts and medical imaging. However, with the new refining line, Solvay can now produce high-purity NdPr oxide. The company also revealed plans to separate dysprosium and terbium in future phases, expanding its contribution to the EU’s strategic metal needs.
As global rare earth supply chains face increasing pressure from Chinese export restrictions, Solvay’s investment is timely. China's recent controls on heavy rare earths and magnet materials, enacted following U.S. tariff escalations, have renewed concerns across Western industries. Past curbs on gallium and tungsten caused price volatility and supply constraints—events that highlighted the West’s dependency on China for critical inputs.
Solvay’s initiative directly supports the European Union’s Critical Raw Materials Act. The company plans to meet 30% of Europe’s demand for magnet-focused REOs by 2030. This goal will reduce exposure to geopolitical risks and enhance domestic capabilities for the clean energy transition. The new refining line is also a key milestone in Solvay’s broader strategy to support European industrial autonomy.
To secure a sustainable and diversified feedstock supply, Solvay is forming strategic partnerships. The company has teamed up with Cyclic Materials of Canada to receive recycled mixed rare earth oxide (mREO) streams. In parallel, Solvay collaborates with Carester, which is constructing the Caremag refining facility in Lacq, France. These alliances strengthen the circular economy for rare earths and reduce reliance on virgin material imports from politically sensitive regions.
ScrapInsight Editorial Commentary
Solvay’s entry into magnet-grade REO refining is a pivotal moment for Europe’s clean tech sector. As LME and Fastmarkets price indices respond to tightening Chinese exports, localized refining capacity offers both security and flexibility. The integration of recycled feedstock also signals growing industrial acceptance of circular supply models. Watch for upward pressure on scrap NdFeB magnet demand and stronger policy support for EU-based recovery facilities.
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