Belgium-based chemicals group Solvay is exploring the possibility of establishing a rare earths processing plant in the United States, citing stronger financial and governmental support compared to Europe. The announcement highlights the growing global race to develop domestic industries for critical minerals vital to defense, renewable energy, and advanced electronics.
Solvay is one of the few companies outside of China capable of the highly complex rare earth element separation process, which is essential for producing super-strong magnets used in electric vehicles, wind turbines, and military technologies.
Solvay’s Current Operations and Expansion Plans
Earlier this year, Solvay began modest processing of minerals for permanent magnets at its French plant in La Rochelle, on France’s Atlantic coast. However, CEO Philippe Kehren confirmed that commercial-scale production and expansion—requiring an estimated €50-100 million investment—would depend heavily on support from customers and government initiatives.
“We feel limited support today in Europe, so we continue to work with European policymakers to create the right conditions,” Kehren told reporters. “We see more support coming from North America, to be perfectly clear.”
Currently, Solvay produces several hundred metric tons per year of key rare earth elements neodymium (Nd) and praseodymium (Pr) for magnets. The company also plans to add heavy rare earth elements dysprosium (Dy) and terbium (Tb) to its production line next year.
U.S. Opportunity and Government Incentives
The United States has been aggressively investing in rare earths production to reduce dependence on China, which currently dominates approximately 90% of the world’s processed rare earth market. MP Materials, the sole U.S. rare earths miner, secured a multi-billion-dollar deal with the U.S. government in July to expand processing and magnet production.
When asked if Solvay would build a U.S.-based rare earth separation plant if government support were offered similar to MP Materials, Kehren responded: “The answer is yes. We’re a global company with unique know-how. We can take any source of rare earth material, separate, purify, and supply any type of customer.”
Solvay’s expertise complements MP Materials’ mining capabilities, as separation and purification require specialized technical knowledge to produce high-quality rare earth products.
Strategic Importance of Rare Earths
Rare earth elements are critical to multiple strategic industries:
- Defense: Used in missile guidance systems, radar, and other advanced military technology.
- Electric Vehicles (EVs): Neodymium magnets are vital for electric motors.
- Renewable Energy: Strong magnets improve the efficiency of wind turbines.
- Electronics: Smartphones, computers, and other devices rely on rare earth materials.
By establishing a U.S. plant, Solvay could play a key role in the resilient and diversified supply chain for critical minerals, reducing global dependence on Chinese processing and strengthening North American industrial security.
Historical Context and Global Market Dynamics
Solvay’s La Rochelle plant was once among the world’s largest rare earth processing facilities four decades ago. However, production gradually declined as China ramped up lower-cost output, establishing near-total dominance in the market.
Now, Solvay aims to reclaim a significant position in the market, leveraging its long-standing technical expertise and emerging support from governments seeking to bolster domestic rare earth capabilities.
Looking Ahead
With interest growing in the United States and government-backed incentives, Solvay is actively evaluating potential sites and partnerships for its next rare earths plant. The company remains in discussions with customers and government agencies worldwide to secure the resources and financial backing needed for a large-scale facility.
Kehren concluded, “We are in talks with all stakeholders. The opportunity in North America is significant, and we are ready to act if conditions are favorable.”
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