Rare earth metals are crucial to modern technology, including smartphones, electric vehicles, and wind turbines. However, 70% of mining and 90% of refining occur in China due to government support.
To reduce dependence on Chinese rare earths, the EU has set targets for reducing imports by 2030. The La Rochelle plant in western France is expanding its processing capabilities to meet growing demand across Europe.
Solvay’s CEO Philippe Kehren says the facility will focus on recycling rare earths and producing magnets for electric car batteries, advanced electronics, and defence systems. The company aims to produce 30% of Europe’s needed rare earths by recycling end-of-life motors and equipment.
However, securing access to raw materials is a complex issue. China has control over exports, citing its sovereign right as “common practice.” Western firms, including Australia’s Viridis Mining, require more government support to catch up with Chinese rivals.
The EU’s Critical Raw Materials Act sets targets for reducing dependence on imports by 2030. The La Rochelle plant will play a crucial role in achieving this goal. Solvay’s investment in the facility is supported by €20m in tax credits from the French government.
As demand continues to grow, the company will need to source more virgin material from countries like Brazil and Canada. Securing access to raw materials is critical for Europe’s economic growth and independence from China.
Source: https://www.bbc.com/news/articles/cm2zp6m4gy7o