Solvay inks MoU with to pursue manufacturing opportunities in rare earth industry

Solvay inks MoU with to pursue manufacturing opportunities in rare earth industry

MoU further reinforces both companies’ strategy to establish a significant manufacturing footprint for the rare earth permanent magnets value chain in Europe

  • By ICN Bureau | March 08, 2024

Solvay and Carester announced the signing of a Memorandum of Understanding (MoU) to form a strategic partnership, aimed at leveraging the expertise of both companies to pursue manufacturing opportunities within the rare earth industry for the permanent magnets value chain in Europe.

The collaboration will enable both companies to enhance their respective strengths in the rare earths industry, with Solvay contributing its industrial assets and operational experience, and Carester bringing expertise in recycling end-of-life equipment, upstream market knowledge, and related activities.

Europe's transition to electrification in the automotive industry, expansion of wind power energy, and acceleration of digitalization necessitate the use of rare earth permanent magnets.

With China's dominance in rare earth refining, Solvay has taken proactive measures since the end of 2022 to establish a rare earths hub for a permanent magnets value chain in La Rochelle, France, aiming to enhance European self-sufficiency.

“We're thrilled to reinforce our dedication to the green energy transition and the rare earths industry through our investment in the magnet value chain, in partnership with Carester” said Philippe Kehren, CEO of Solvay. “By collaborating with established rare earths players outside of China, we're laying the groundwork for a powerful rare earths hub in Europe and establishing a strong European manufacturing base to supply the critically important magnets industry.”

“It’s a great opportunity to collaborate with Solvay and its unique recognized asset based in La Rochelle to complement our Lacq future unit. We will then contribute even more to European strategic independence in critical minerals while paving the road for a full circular economy thanks to recycling” said Frédéric Carencotte, CEO of Carester.

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