# Solvay signs Brazil rare earth supply agreement through 2034 *The Belgian chemical group secured 70% of initial magnetic rare earth output from the Colossus ionic clay project, feeding its La Rochelle refinery to bypass Chinese export curbs.* **Published:** November 4, 2026 **By:** Mina Okoro **Section:** Semiconductors & AI Hardware — Cross-border **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/semiconductors/solvay-signs-brazil-rare-earth-supply-agreement-through-2034-1131 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Solvay secures 70% of initial Nd, Pr, Dy, Tb output from Brazil's Colossus mine through 2034 - Viridis supplies mixed rare earth carbonate to Solvay's La Rochelle separation hub from 2028 - Agreement supports EU mandate to refine 40% of strategic minerals domestically by 2030 ![A worker scoops powdered rare earth feedstock from a large bulk bag inside an industrial processing plant. (AI-generated image)](https://eastasiabrief.com/media/2026-11-04-410a26b129ba.webp) *A worker scoops powdered rare earth feedstock from a large bulk bag inside an industrial processing plant. (AI-generated image)* Solvay signed a binding commercial agreement on Nov. 4, 2026 to buy rare earth feedstocks through 2034 from the Colossus ionic clay mining project in Brazil. Under the contract, Australia's Viridis Mining and Minerals will supply mixed rare earth carbonate to Solvay's La Rochelle refinery in France. The agreement reserves roughly 70% of initial planned production of critical magnet rare earths for Solvay, covering neodymium, praseodymium, dysprosium and terbium. Solvay also secured a right of first offer on remaining production volumes, allowing the chemical producer to expand intake as the Brazilian mine scales. The long-term pact formalizes a non-binding letter of intent signed between the two companies on June 1, 2026. Solvay operates the chemical separation facility in La Rochelle, which remains the only industrial-scale plant outside China capable of processing light and heavy rare earths. The plant inaugurated a dedicated separation line for neodymium-praseodymium oxide in April 2025 to supply European magnet alloy producers. Solvay expanded the site further in September 2026, launching commercial solvent extraction of heavy rare earths dysprosium and terbium. The Belgian company targets supplying 30% of Europe's permanent magnet rare earth demand by 2030 from the French facility, the company said. That processing target aligns with the European Union Critical Raw Materials Act, which requires the bloc to refine at least 40% of its strategic raw materials domestically. The European regulation also mandates that no single non-EU country provide more than 65% of any individual strategic critical material by 2030. Viridis controls the Colossus project in the Poços de Caldas complex in Minas Gerais, holding 493 million tonnes of ionic clay ore. The deposit grades at 2,508 parts per million of total rare earth oxide, representing the largest undeveloped ionic clay resource outside China. Ionic adsorption clay deposits host rare earths bound chemically to clay surfaces, allowing extraction using salt solutions rather than high-temperature cracking. Hard-rock carbonatite deposits dominate mining in North America and Australia, but those ores carry low concentrations of heavy rare earths such as dysprosium. China currently controls over 90% of global heavy rare earth separation capacity, giving Beijing leverage over downstream permanent magnet supply chains. Dysprosium and terbium serve as critical additives in sintered neodymium-iron-boron magnets, preventing demagnetization in electric vehicle traction motors at temperatures above 150 degrees Celsius. Offshore wind turbine generators and defense guidance systems also require permanent magnets formulated with these specific heavy rare earth oxides. Viridis validated its chemical flow sheet earlier this year by producing demonstration batches of mixed rare earth carbonate at its pilot plant in Poços de Caldas. Solvay operates its own industrial chemical production complex in Paulínia in São Paulo state, giving the group operational infrastructure within Brazil. Feedstocks arriving at La Rochelle will also yield commercial quantities of samarium, gadolinium and yttrium used in aerospace ceramics and optical systems. Solvay already delivers separated rare earth oxides to British alloy maker Less Common Metals, feeding Western manufacturing supply chains. China's Ministry of Commerce expanded export controls on rare earth processing and separation technologies in late 2023, restricting outbound technology licensing. Subsequent Chinese customs rules enacted in 2024 tightened export licensing for heavy rare earth metals, prompting Western automakers to demand diversified sourcing. Securing uncommitted feedstock from South America provides Western refiners an upstream supply channel that completely bypasses Chinese state mining quotas. Solvay approved a capital outlay of 15 million euros to 20 million euros in July 2026 to complete its French heavy separation lines. Viridis reported cash holdings of 119.7 million Australian dollars ($78 million) in late October 2026 to fund site engineering and commercial development. The announcement does not state the total dollar value of the contract or the pricing formula governing future shipments. Viridis submitted its environmental installation license application in May 2026 and expects to begin construction once state regulators complete their review. Initial commercial shipments of Brazilian mixed rare earth carbonate are scheduled to arrive at the port of La Rochelle in early 2028. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Brazil rare earth offtake agreement | POSCO International and domestic magnet makers gain alternate non-China Dy/Tb sourcing | State refiners lose prospective ex-China heavy rare earth processing market share | Hitachi Metals and auto suppliers access French-refined magnetic oxides | EV motor supply chains de-risk heavy rare earth exposure ahead of 2030 EU targets | ## In this story - **Companies:** Solvay, Viridis Mining and Minerals - **Tickers:** SOLB.BR, VMM.AX - **Exposed:** Less Common Metals - **Policy:** Local Content Rules, Export Controls - **Impact:** Supply Chain, Capex, Compliance ## Primary sources 1. chemanalyst.com 2. brasilmineral.com.br 3. solvay.com 4. marketindex.com.au 5. rare-earth-mining.com --- Cite as: East Asia Brief, "Solvay signs Brazil rare earth supply agreement through 2034," November 4, 2026. https://eastasiabrief.com/semiconductors/solvay-signs-brazil-rare-earth-supply-agreement-through-2034-1131