Bloc has set ambitious 2030 targets for domestic production of critical minerals. A rare earth processing plant, owned by Belgian chemicals group Solvay, located in La Rochelle, France. — Reuters Published: Thu 27 Jun 2024, 9:38 PM
Four decades ago, a rare earth processing plant on France’s Atlantic coast was one of the largest in the world, producing materials for color televisions, arc lights, and camera lenses. Solvay, the current owner, is working to restore the plant’s former glory as Europe aims to increase production of minerals crucial for the green energy transition.
The factory’s long history reflects the challenges Europe and the United States face as they seek to reduce their dependence on rare earth processing in China. In recent years, China has improved sustainability practices and closed polluting operations in the rare earth industry. Europe is now focused on increasing domestic production of rare earths to meet the growing demand for green technologies.
Solvay plans to start producing rare earths for permanent magnets used in electric vehicles and wind energy by next year. The company aims to supply a significant portion of Europe’s magnet production demand, although reaching this goal may take until after 2030.
Under a new EU law, the bloc has set ambitious 2030 targets for domestic production of critical minerals essential for the green transition. Rare earths, used in permanent magnets for EVs and wind energy, are a key focus for the EU. However, meeting these targets may be challenging, as forecasted production falls short of demand estimates.
European companies are also looking into recycling as a potential source of critical rare earths. While there are rich rare earth deposits in Europe, mining projects face challenges such as public opposition and environmental concerns. Nonetheless, efforts are underway to increase domestic production and reduce reliance on imports from China.
