Solvay has inaugurated a new production line for processing and refining rare earth elements in La Rochelle, France, the Belgian chemicals group announced in a press release on Tuesday. It is the largest facility outside China capable of separating rare earth elements.

The La Rochelle plant has been refining some of the 17 rare earth elements since 1948. The elements are mainly used in catalytic converters to reduce emissions from internal combustion engines.

Starting next week, the plant will expand its activities to include three more rare earth elements. These are essential for the production of permanent magnets, critical components in electric motors, wind turbines, advanced electronics and defence systems.

European alternative

Currently, both the magnets and the raw materials used to make them are largely sourced from China. Solvay wants to offer a European alternative through local production. By 2030, the company hopes to produce around 4,500 tonnes a year, or 30 per cent of the European market. This year it plans to scale up to several hundred tonnes.

At the moment there is no real market for our rare earths

“There is enough capacity in China to supply the whole world with rare earths at a lower price than ours,” CEO Philippe Kehren told De Tijd. “At the moment there is no real market for our rare earths. That is why we are proceeding cautiously, investing only a few million euros for now – enough to produce several hundred tonnes this year. We are waiting for the European market to develop.”

The La Rochelle site employs 300 people and covers 40 hectares. It is one of Solvay’s seven production sites in France.