Solvay Signs Rare Earth Supply Deals with U.S. Magnet Makers Noveon Magnetics

• Solvay has signed supply deals with two U.S. magnet makers, Noveon Magnetics and Permag, for rare earth oxides.
• The agreements cover key materials for permanent magnets used in EVs and defense, including neodymium and samarium.
• This supports the ramp-up of Solvay's rare earth processing plant in France, one of the few such facilities outside China.
• The CEO stated initial volumes are limited but production can be scaled up quickly, with some supplies starting soon.
• Solvay noted U.S. customers are currently more ready to sign deals than European ones, where progress depends on EU Commission support.

Solvay has announced agreements to supply rare earth materials to two United States magnet manufacturers, Noveon Magnetics and Permag, as part of its strategy to expand operations at its processing facility in France. The company, recognized as one of the few entities outside China with the capability to separate rare earths, initiated preliminary processing at its French plant earlier this year but had indicated that full commercial production would require concrete support from both customers and governments.

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The agreement with Texas-based Noveon Magnetics involves the supply of neodymium, praseodymium, dysprosium, and terbium oxides, which are critical components for manufacturing high-strength permanent magnets used in electric vehicles and defense technologies. A separate agreement with Permag is for the supply of samarium oxide, a material used in magnets capable of performing under extreme temperatures, commonly found in defense and nuclear applications.

The Chief Executive Officer of Solvay clarified that while the initial volumes for these agreements are limited, the La Rochelle plant possesses the flexibility to scale up production rapidly. He confirmed that supplies of certain oxides would commence shortly, with others following in the coming months. A senior company president stated that these partnerships reflect Solvay's commitment to establishing sustainable and secure rare earth supply chains in Europe and abroad.

Company leadership also noted a disparity in market readiness between the United States and Europe, observing that U.S. customers are currently more prepared to enter into commercial contracts. They emphasized that the pace of developing a robust, independent rare earth supply chain within Europe would be significantly influenced by the decisions and support of the European Commission.