Solvay switched on a rare-earth production line for permanent magnets at its La Rochelle facility, a timely first step in creating a European supply chain as China moves to curb its exports on the back of Trump administration tariffs.
The plant separates all critical rare-earth materials needed in EV motors and renewable energy to advanced electronics and defense systems. Although output initially will be a few hundred tons, La Rochelle will still be the biggest such plant outside of China, Brussels-based Solvay said in a release.
China accounts for an estimated 70-90% of the global supply of rare earths. In addition to expanding the La Rochelle site’s permanent-magnet capacity, Solvay is rejigging its production process to lower CO2 emissions by 40% and halve water consumption by 2030.
The cost to convert part of the La Rochelle autocatalysts facility to permanent magnets is estimated at a few hundred million of euros, but Solvay obtained subsidies to help with the expense. To provide a bit of wiggle room for spending on growth projects, CEO Philippe Kehren recently stepped back from a cash-flow target he made to investors.
“We have ambitious plans to foster a reliable value chain for high-performance permanent magnets,” Kehren said in a statement today.