Belgium-based Solvay’s CEO, Philippe Kehren, has said that the company is interested in establishing a rare earths processing plant in the US because of more substantial government backing compared to Europe, reported Reuters.
The chemical manufacturer, which remains one of the few companies outside China with rare earth separation capabilities, began small-scale production of minerals used in permanent magnets at its French facility earlier this year.
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Solvay said that scaling up to commercial output will depend upon securing sufficient support from governments and customers.
The company has not yet approved a €50m–100m investment aimed at expanding its French site, as discussions with clients and government bodies are continuing.
In July, MP Materials, said to be the operator of the only US rare earth mine, signed a multibillion-dollar agreement with the government to expand its processing operations and start manufacturing magnets domestically.
Asked whether Solvay would establish a US separation plant if it secured incentives comparable to those offered to MP Materials, Kehren responded: “The answer is yes.”
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By GlobalDataKehren said: “We feel limited support today still in Europe, so we continue to work with the European policymakers in order to see how to create those conditions.
“We see more support coming from North America to be perfectly clear.”
When questioned about Solvay’s potential discussions with the US Government, a company spokesperson confirmed to the news outlet that Solvay operates globally and is “in talks with all stakeholders”.
The US and its allies have accelerated efforts to build local supply chains for rare earth magnets – essential components in defence, electronics, wind turbines and electric vehicles – in light of China’s market dominance.
Decades ago, Solvay’s La Rochelle plant was said to be among the largest rare earth facilities worldwide, but output has waned over the years as China increased lower-cost production.
China presently accounts for nearly 90% of processed rare earths globally.
The company annually produces a few hundred tonnes of neodymium and praseodymium, which are rare earth magnets.
Plans are under way to include additional elements such as terbium and dysprosium in 2026.
