The EU is increasing its focus on obtaining a stable supply of rare earth elements. These six elements are essential for many modern technologies, and the EU now wants to cut its reliance from China. Now it’s up to the European Commission to follow the European Parliament’s lead and act decisively. Currently, China holds the overwhelming majority of the market, accounting for roughly 70% of rare earth mining and 90% of refining capacity.
Rare earths, or REEs, are a group of 17 important metals. They are essential to the production of smartphones, electric vehicles, wind turbines and medical equipment such as MRI scanners. Demand for these technologies, driven by a pressing need to improve transportation efficiency and effectiveness, is surging. European leaders are all too aware of the dangers of relying on one country for these strategic materials.
To meet this formidable challenge, Solvay is significantly increasing its processing plant. This Belgian specialty chemicals behemoth is investing big time in La Rochelle, western France. What makes the La Rochelle facility particularly notable is that it represents the only plant beyond China. What’s notable about it is that it can process all 17 different rare earths. On the other side, Europe only has two rare earth processing facilities, the EuRare facility in Estonia and another in La Rochelle, France.
The French government has backed the expansion at La Rochelle. They are throwing in about €20 million ($23 million, £17.4 million) in tax credits. Spread out across 40 hectares, this facility is home to more than 300 employees. Since 1948, Solvay’s plant has been in continuous operation. It uses an estimated 1,500 unique processes to mine and process rare earth elements.
Florian Gouneau, the production manager at Solvay, emphasized the importance of pricing in determining the future success of the expanded plant.
“The objective of the liquid separation unit will be to purify cerium on one side, lanthanum on the other side,” – Florian Gouneau.
As Europe works to strengthen its rare earth capacities, industry leaders say regulatory and financial backing is sorely needed. Rafael Moreno, CEO of Australia’s Viridis Mining, stated that this type of support is essential to making the case for increased local production.
European officials understand just as well that diversifying sources is necessary to address these very real pending vulnerabilities. Benjamin Gallezot, an adviser to President Macron on strategic minerals and metals, articulated the dangers of relying solely on one supplier.
“Having a dependency on a single source – it is dangerous because you cannot know what will happen to this source for various reasons,” – Benjamin Gallezot.
“It can be a geopolitical reason, but it can also be, you know, natural disaster or whatever.” – Benjamin Gallezot.
Experts argue that Europe must develop its own mining capabilities while exploring sustainable practices. Mr. Kehren of Solvay emphasized that there are responsible ways to extract these resources that don’t result in large environmental impacts.
“There are solutions to do it in a very responsible way without polluting,” – Mr Kehren.
To stimulate local production we’ve been strongly advocating for capital grants and other financial incentives to attract stakeholders. These incentives are intended to subsidize the sourcing of rare earth elements in Europe.
“Are there going to be [financial] incentives, for example, for the different players in this value chain to source rare earth elements from Europe?” – Mr Kehren.
Solvay’s vision includes recycling as a critical component of Europe’s rare earth strategy. The company estimates that around 30% of the required rare earth elements could be produced by recycling end-of-life motors and other equipment.
“We think that we can probably produce 30% of the rare earths needed by Europe just by recycling end of life motors and other equipment,” – Mr Kehren.
Recent geopolitical tensions demonstrate the pressing need for Europe to establish a more robust supply chain. Ironically, the increasing global demand for clean energy technologies exacerbates this urgent challenge. As part of its broader strategy, the European Union aims to reduce its dependence on imports for extracting, processing, and recycling essential materials by 2030.
Mr. Kehren went on to stress the importance for Europe to establish its own mining supply.
“I think it’s absolutely necessary to have our own mines, not necessarily a lot of them, because we can have a mix, but it’s important to have our own sourcing,” – Mr Kehren.