Houston, July 29th (Argus) - Belgian chemical producer Solvay is investing up to 20 million euros (23 million US dollars) at its La Rochelle factory in France for heavy rare earth separation, and expects to start industrial-scale production of dysprosium and terbium in the autumn.
This expansion follows the factory's production of magnetic materials using praseodymium-nickel in April 2025. Solvay has already invested 10 million euros at the factory.
Solvay's CEO, Philippe Kehren, said that they are reusing existing capacity rather than building new capacity, and that the cost of the same capacity anywhere outside China would be "4 to 5 times higher".
As customer purchase commitments increase, capital is gradually being released, and the final investment target is 50 million to 100 million euros. Kehren added that the French government supports part of the expenditure, and some customers are making advance payments.
The company is signing new contracts for praseodymium-nickel and dysprosium-terbium with automotive manufacturers, wind turbine manufacturers, and aerospace customers, as well as its established customer businesses in the automotive catalysis, electronics, and medical industries.
Rare earths account for approximately 8% of Solvay's sales or half of its specialty chemicals division.
In terms of raw materials, Solvay signed a non-binding letter of intent with the Australian-listed Viridis Mining and Minerals on June 1st to extract mixed rare earth carbonates from Viridis' Colossus project in Brazil, with the goal of starting deliveries from 2028.
The products to be produced will include praseodymium-nickel, dysprosium-terbium, samarium, gadolinium, and yttrium. The two companies are working to reach final purchase agreements and final investment decisions in the second half of 2026.
Solvay aims to account for 30% of Europe's rare earth demand by 2030.
