Solvay signed a Letter of Intent (LOI) with Viridis Mining and Minerals to establish a strategic supply of rare earth materials by 2028, marking an important step toward strengthening and diversifying global critical minerals supply chains. Under the proposed agreement, the two companies will work toward finalizing a definitive sourcing arrangement that will enable Solvay to secure rare earth feedstocks from Brazil for processing at its La Rochelle facility in France.
Leveraging Brazilian Resources and Advanced Processing Expertise
As part of the collaboration, Viridis is expected to supply rare earth feedstocks from its Brazilian operations, while Solvay will contribute its globally recognized expertise in rare earth separation and processing technologies. The partnership aims to accelerate the development of a reliable supply chain for rare earth materials. By combining Viridis’ resource base with Solvay’s advanced refining capabilities, the companies plan to convert raw materials into high-purity rare earth oxides required for a wide range of high-tech and clean-energy applications. These materials play a critical role in manufacturing electric vehicle (EV) motors, renewable energy systems, advanced electronics, aerospace components, and defense technologies.
Supporting Growing Demand for Magnet Materials
The feedstock covered under the proposed agreement contains several strategically important rare earth elements used in permanent magnets, including neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb). Demand for these materials continues to rise as global electrification and clean energy initiatives accelerate. In addition, the feedstock includes significant quantities of heavy rare earth elements such as samarium (Sm), gadolinium (Gd), and yttrium (Y). These materials are widely used in automotive, electronics, medical devices, aerospace systems, and other advanced technology sectors.
Solvay Expands Rare Earth Processing Capabilities
According to An Nuyttens, President of Solvay’s Special Chem business, the proposed partnership would strengthen the company’s upstream supply network and provide an additional reliable source of critical raw materials. The collaboration is expected to support Solvay’s efforts to maximize utilization of its processing infrastructure while meeting growing global demand for sustainably sourced and high-purity rare earth elements. As part of its expansion strategy, Solvay plans to begin industrial-scale separation of dysprosium and terbium at its La Rochelle facility by September 2026. The company also remains committed to supplying 30% of Europe’s demand for magnet-grade light and heavy rare earth materials by 2030.
Building a More Resilient Rare Earth Value Chain
Viridis Mining and Minerals believes the partnership will create a strong link between its rare earth resources and one of the world’s most advanced rare earth processing platforms. The collaboration is expected to contribute to the development of a more diversified, secure, and responsible supply chain for critical minerals, reducing dependence on concentrated sources of rare earth production and supporting rapidly expanding global demand.
La Rochelle Facility Plays Strategic Role
Solvay’s La Rochelle facility is among the largest rare earth separation facilities outside China and is one of the few industrial sites globally capable of processing the full range of rare earth elements at commercial scale. Consequently, the facility serves as a key asset in Solvay’s strategy to expand rare earth production capacity and strengthen the resilience of the global rare earth value chain.
Subject to Final Agreements
As per the press release, the proposed transaction remains subject to the negotiation and execution of definitive agreements, regulatory and compliance requirements, and other customary conditions. As a result, there can be no assurance regarding the completion of the transaction or its final terms.
