Solvay seals two deals to supply rare earths to US magnet makers

LONDON (Reuters) -Chemicals group Solvay has agreed two deals to supply rare earths to U.S. magnet makers as it seeks to ramp up its processing plant in France, the company said on Wednesday.

Solvay, one of a few companies outside of China capable of the complex rare earths separation, in April launched modest processing of minerals needed for permanent magnets at its French plant, but said commercial production would depend on support from customers and governments.

Solvay concluded agreements with U.S. companies Noveon Magnetics and Permag to supply rare earth oxides, separate statements said.

The United States, Europe and allies have been racing to create domestic industries to make super-strong rare earth magnets vital for defence, electric vehicles, electronics and wind turbines, and cut dependence on China.

The deal with privately-held Noveon is for elements neodymium, praseodymium, dysprosium and terbium - known as NdPr and DyTb - the four key rare earths needed to make permanent magnets.

"This collaboration is part of Solvay's broader commitment to sustainable and secure rare earth supply chains, both in Europe and abroad," An Nuyttens, president of Solvay Special Chemicals, said in a statement.

Texas-based Noveon began selling sintered neodymium-iron-boron (NdFeB) magnets commercially in 2023.

DEAL WITH PERMAG TO SUPPLY SAMARIUM OXIDE

The deal with Permag is to supply samarium oxide, which will be turned into samarium metal by British firm Less Common Metals.

Samarium is used to make a type of magnet that can withstand very high temperatures without losing its magnetic properties and is often used in defence applications and nuclear reactor components.

Solvay CEO Philippe Kehren said the agreements involved "limited volumes" but that the company's plant in La Rochelle could increase production levels quickly.

Solvay can already produce NdPr and samarium oxide so will start those supplies very soon, the CEO said on a call with reporters. "DyTb we will need a few months, but we will start in the course of 2026," he added.

Last week, Kehren said Solvay would be interested in building a rare earths processing plant in the United States, where financial support is stronger than in Europe.

"From our point of view, what we see is customers from the U.S. being ready today to sign commercial contracts. Not yet fully in Europe, but we're working on it," Kehren told reporters on Wednesday.

European customers understand the long-term need for an independent rare earths supply chain in Europe.

"But how and when and how fast this will come will also depend on the European Commission," Nuyttens added.

(Reporting by Eric Onstad; additional reporting by Tom Daly, editing by Ed Osmond)