The Solvay plant in France is the only facility in Europe capable of fully separating rare earth metals. These metals are crucial for smartphones, electric vehicles, wind turbines, and defense systems. Currently, 70% of extraction and 90% of processing of these metals take place in China, making Europe dependent on imports.
The pandemic and the war in Ukraine exposed vulnerabilities in supply chains. Solvay is moving away from catalytic converters and focusing on producing magnets for electric vehicle batteries and defense systems. The main source is recycling outdated engines and equipment within Europe.
The company plans to cover 30% of Europe’s needs from local sources by 2030. Additionally, it plans to import raw materials from Brazil, Canada, and Australia. At present, only two processing plants operate in Europe — in France and Estonia.
The European Union, through its Raw Materials Act, aims to reduce import dependence. The French government has granted Solvay a €20 million tax incentive. Experts warn that reliance on a single source can pose geopolitical risks.
China considers export control its sovereign right. Europe is signing agreements with Latin America and other countries. Despite the higher cost of environmentally friendly production, Solvay aims to encourage the use of Europe-produced metals through long-term contracts.
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