Solvay Expands Rare Earths Supply to Boost U.S. Magnet Industry

Solvay has signed deals with U.S. companies Noveon Magnetics and Permag to supply rare earths, enhancing its French plant's production. The partnerships aim to bolster non-Chinese supply chains for rare earth magnets essential in various sectors. Plans for expansion in the U.S. are also underway.

Chemicals powerhouse Solvay has inked crucial agreements to supply rare earths to U.S. magnet makers, boosting its processing operations in France. The company confirmed the deals with Noveon Magnetics and Permag on Wednesday as part of efforts to strengthen independence from dominant Chinese supply.

With these agreements, Solvay aims to deliver vital rare earth oxides such as neodymium, praseodymium, dysprosium, and terbium—key elements for manufacturing permanent magnets. These materials are essential in fields ranging from defense to renewable energy, underlining a strategic push by the U.S. and its allies to develop local supply chains.

While Solvay's French plant ramps up, CEO Philippe Kehren hinted at potential expansion to the U.S. due to favorable financial incentives. Despite European efforts lagging slightly, discussions with the European Commission continue to advance an independent rare earth supply within the continent.

(With inputs from agencies.)