*

Solvay agrees deals to supply rare earths to US magnet

makers

*

Noveon Magnetics and Permag to get rare earth oxides from

Solvay

*

US, Europe aiming to cut dependence on China

LONDON, Nov 12 (Reuters) - Chemicals group Solvay

has agreed two deals to supply rare earths to U.S.

magnet makers as it seeks to ramp up its processing plant in

France, the company said on Wednesday.

Solvay, one of a few companies outside of China capable of

the complex rare earths separation, in April launched modest

processing of minerals needed for permanent magnets at its

French plant, but said commercial production would depend on

support from customers and governments.

Solvay concluded agreements with U.S. companies Noveon

Magnetics and Permag to supply rare earth oxides, separate

statements said.

The United States, Europe and allies have been racing to

create domestic industries to make super-strong rare earth

magnets vital for defence, electric vehicles, electronics and

wind turbines, and cut dependence on China.

The deal with privately-held Noveon is for elements

neodymium, praseodymium, dysprosium and terbium - known as NdPr

and DyTb - the four key rare earths needed to make permanent

magnets.

"This collaboration is part of Solvay's broader commitment

to sustainable and secure rare earth supply chains, both in

Europe and abroad," An Nuyttens, president of Solvay Special

Chemicals, said in a statement.

Texas-based Noveon began selling sintered

neodymium-iron-boron (NdFeB) magnets commercially in 2023.

DEAL WITH PERMAG TO SUPPLY SAMARIUM OXIDE

The deal with Permag is to supply samarium oxide, which will

be turned into samarium metal by British firm Less Common

Metals.

Samarium is used to make a type of magnet that can withstand

very high temperatures without losing its magnetic properties

and is often used in defence applications and nuclear reactor

components.

Solvay CEO Philippe Kehren said the agreements involved

"limited volumes" but that the company's plant in La Rochelle

could increase production levels quickly.

Solvay can already produce NdPr and samarium oxide so will

start those supplies very soon, the CEO said on a call with

reporters. "DyTb we will need a few months, but we will start in

the course of 2026," he added.

Last week, Kehren said Solvay would be interested in

building a rare earths processing plant in the United States,

where financial support is stronger than in Europe.

"From our point of view, what we see is customers from

the U.S. being ready today to sign commercial contracts. Not yet

fully in Europe, but we're working on it," Kehren told reporters

on Wednesday.

European customers understand the long-term need for an

independent rare earths supply chain in Europe.

"But how and when and how fast this will come will also

depend on the European Commission," Nuyttens added.