For nearly eight decades, this industrial plant in La Rochelle, on France’s western coast, has been a source of rare earth metals.
As these materials become increasingly critical to the global economy, chemical firm Solvay is expanding its processing plant, situated near the Atlantic Ocean, to meet the escalating demand across Europe.
This group of 17 metals is vital for a wide array of modern technologies, including smartphones, electric vehicles, wind turbines, and MRI scanners.
However, approximately 70% of rare earth mining and 90% of refining occur in China, a result of sustained support from the Chinese government.
Europe, like many other regions, is seeking to reduce its reliance on importing these key metals from China. The future of Solvay’s plant will be pivotal to realizing these ambitions.
“This is a rapidly growing market, and there is an increasing demand for shorter supply chains,” states Solvay’s CEO, Philippe Kehren.
The COVID-19 pandemic and the war in Ukraine have prompted companies and policymakers to address vulnerabilities within their supply chains.
“When a material is almost entirely sourced from a single location, dependence creates a desire to diversify sourcing. This is what we can offer,” explains the head of the Belgian chemical giant.
This rationale underpins the EU’s Critical Raw Materials Act, which took effect last year, setting targets for reducing import dependence for the extraction, processing, and recycling of essential substances by 2030.
Europe currently has only two rare earth processing facilities: one in Estonia and the other in western France. The latter is the sole plant outside of China capable of processing all 17 rare earth elements.
The increased investment in the facility coincides with a shift in focus from supplying rare earths for catalytic converters to meeting the rising demand for the magnets crucial for electric car batteries, advanced electronics, and defense systems.
Currently, the emphasis is on recycling rare earths already present in Europe. “We believe we can potentially produce 30% of Europe’s rare earth needs simply by recycling end-of-life motors and other equipment,” says Mr. Kehren.
As demand continues to grow, this will evolve, necessitating more virgin material from countries like Brazil, Canada, and Australia.
There are currently no operational rare earth mines in Europe. Projects in Norway and Sweden are among the most advanced, but are unlikely to be operational for another decade.
“I think it’s absolutely necessary to have our own mines, not necessarily a large number, as we can have a mix, but it’s important to have our own sourcing,” says Mr. Kehren.
Transforming these materials into the powders that are the end product of this plant is a complex process.
It involves approximately 1,500 processes, and given the facility’s unique capabilities, outsiders are rarely permitted entry, due to concerns about rivals potentially gaining knowledge otherwise concentrated in China.
However, we were granted special access to one of the separation rooms, a vital component of the closely guarded know-how accumulated since the plant’s inception in 1948.
“The objective of the liquid separation unit is to purify cerium on one side and lanthanum on the other,” explains production manager Florian Gouneau as we ascend a flight of metal stairs.
“It’s similar to having a multi-fruit juice with orange, apple, and pineapple; the liquid separation unit aims to separate apple juice on one side, orange juice on the other, and so forth.”
The room itself is about the size of a football pitch, housing rows of enormous metal vats where chemical reactions separate the different rare earths.
This 40-hectare site employs over 300 people. A vast array of industrial buildings are connected by metal pipes that transport substances through the processes.
Significant quantities of chemicals are stored in cylindrical tanks, giving the facility a distinct smell reminiscent of a freshly cleaned hospital ward.
When asked if he’s accustomed to the smell after working there for three years, Mr. Gouneau jokingly replies, “What smell?”
The site is also noticeably noisy and warm, with vents constantly humming and expelling hot air into an atmosphere punctuated by seagulls seemingly unaware of their unique vantage point overlooking one of the most important frontlines in the global economy.
The French government supports this facility with approximately €20 million ($23 million; £17.4 million) in tax credits.
“Depending on a single source is dangerous because you cannot anticipate what might happen to that source for various reasons,” says Benjamin Gallezot, President Macron’s advisor on strategic minerals and metals.
“It could be due to geopolitical factors, natural disasters, or other unforeseen events.”
Under the blazing sun, he remains noncommittal regarding the impact of China potentially restricting access to its rare earth exports, a subject central to ongoing US-China trade talks.
However, Mr. Gallezot states, “I believe economic cooperation is clearly more effective than pure competition alone.”
The European Parliament urges the European Commission to intensify efforts to reduce dependence on Chinese rare earths, deeming Beijing’s controls “unjustified” and “intended to be coercive.”
During a recent visit to Germany, China’s Foreign Minister Wang Yi asserted that controlling exports of goods with both commercial and military applications is his country’s “sovereign right” and a “common practice.”
This stance underscores why securing access to raw materials has been central to recent EU trade agreements, such as the one it signed with Argentina, Brazil, Paraguay, and Uruguay last year.
Western firms in the rare earths sector contend that they require more government support to catch up with their Chinese counterparts.
Rafael Moreno, CEO of Australia’s Viridis Mining, asserts that this backing, both regulatory and financial, “is the key right now.” His company is developing a substantial rare earths mine in Brazil, aiming to provide as much as 5% of the world’s rare earths supply.
One reason China has surpassed the rest of the world in rare earths is its greater willingness to handle the radioactive pollution that can result from mining and processing.
Solvay also has rare earth operations in China, and Mr. Kehren states that “there are responsible solutions to avoid pollution.” He adds, “It entails additional costs, so one must be prepared to pay slightly more.”
Pricing is crucial to the future of the expanded La Rochelle plant, he notes. He needs his customers, who supply carmakers and major technology firms, to commit to purchasing specific volumes of rare earths at agreed-upon prices.
While the EU has enshrined targets for lowering imports into law, he wants to see how they will be implemented. “Will there be [financial] incentives, for example, for the different players in this value chain to source rare earth elements from Europe?”
Doing so, he argues, would benefit the continent’s economy.
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