Solvay and Viridis sign letter of intent (LOI) for rare earth materials sourcing

Solvay and Viridis Mining and Minerals have agreed to a Letter of Intent (LOI) to establish a supply chain for rare earth materials sourced from Brazil. The agreement targets delivery to Solvay’s La Rochelle plant in France by 2028, with both companies working toward a definitive sourcing contract. The collaboration aims to strengthen supply chain resilience and meet growing global demand for rare earth elements used in electric vehicles, renewable energy, and defense systems.

Under the LOI, Viridis will supply rare earth feedstocks including neodymium, praseodymium, dysprosium, and terbium, which are critical for permanent magnets. Solvay will contribute its rare earth separation expertise and processing technology to refine these materials into high-purity oxides. The partnership also includes plans to process additional heavy rare earths such as samarium, gadolinium, and yttrium, supporting sectors like automotive, electronics, and aerospace.

Solvay’s La Rochelle facility, one of the largest rare earth separation plants outside China, will play a central role in the collaboration. The company aims to process dysprosium and terbium at industrial scale by September 2026 and targets supplying 30% of the European market for magnet-grade rare earths by 2030. The partnership aligns with Solvay’s broader goal of scaling production capacity and developing a more resilient rare earth value chain.

The proposed transaction remains subject to final documentation and regulatory compliance. Solvay, a global chemical company with €4.3 billion in net sales in 2025, emphasizes sustainability and carbon neutrality by 2050. Viridis Mining and Minerals, with assets in Brazil, Canada, and Australia, will provide the raw materials to support the initiative.