Solvay Aims to Secure Rare Earth Supply with Viridis Starting in 2028
Solvay announced on Monday the signing of a memorandum of understanding (MOU) with Viridis Mining and Minerals to secure a strategic supply of rare earth materials starting in 2028. The two companies will now work towards finalizing a supply agreement.
Rare Earth Supply from Brazil
Under the terms of the memorandum of understanding, Viridis is to supply critical rare earth precursors from Brazil to Solvay's La Rochelle plant in France. Solvay will contribute its recognized expertise in rare earth separation and processing technology to expedite this supply. The raw materials include key rare earths for permanent magnets such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb), supporting the growing global demand. The supply also includes a significant distribution of additional heavy rare earths such as samarium (Sm), gadolinium (Gd), and yttrium (Y), used in critical technology sectors like automotive, electronics, medical, and aerospace.
Processing Capabilities and Production Goals
Solvay plans to achieve industrial-scale separation of dysprosium (Dy) and terbium (Tb) by September 2026 at its La Rochelle site in France. The collaboration will leverage the group's advanced processing, separation, and formulation capabilities to refine raw materials into high-purity element oxides, essential for electric vehicle motors, renewable energies, advanced electronics, and defense systems. Solvay maintains its goal to supply 30% of the European market for rare earths used in magnets (light and heavy) by 2030.
Terms and Status of the Transaction
The proposed transaction remains subject to the finalization of documentation, compliance with applicable requirements, and other customary conditions. Therefore, there can be no assurance that the transaction will be completed or as to its final terms.
