Solvay Locks In Long-Term Rare Earths Supply
Materials manufacturers dependent on rare earths should review how concentrated their sourcing is as long-term offtake terms become available.
Updated on Nov. 4, 2026 in Corporate Finance
Belgian chemicals group Solvay has signed a long-term rare earths supply agreement with Australian miner Viridis Mining and Minerals, drawn from Viridis's Colossus project in Brazil. The deal follows a June letter of intent and covers supply to Solvay's La Rochelle, France plant starting in 2028, for operators in specialty materials supply chains.
Why it matters
Securing a multi-year rare earths source gives Solvay supply certainty for magnet and specialty inputs, a constraint that affects any manufacturer dependent on concentrated sourcing. The move comes as Solvay's third-quarter results weakened, with revenue and EBITDA both falling year on year.
Solvay's third-quarter underlying revenue reached 1.03 billion euros, down 3.3 percent year on year, while underlying EBITDA fell 26.6 percent to 173 million euros, short of the 182.3 million euros analysts expected. Viridis has committed at least 70 percent of expected output from its Colossus project to Solvay, with Solvay holding a right of first refusal over the rest.
The players
Solvay
A Belgian chemicals group whose business spans soda ash and specialty materials, operating at global scale with its La Rochelle plant in France.
Viridis Mining and Minerals
An Australian mining company developing the Colossus rare earths project in Brazil and pursuing long-term offtake agreements with industrial buyers.
OneIM
A counterparty in talks with Solvay that could lead to a joint venture holding Solvay's rare earth activities.
The details
Under the agreement, Viridis will supply neodymium, praseodymium, dysprosium and terbium from 2028 to Solvay's La Rochelle plant, with supply of samarium, gadolinium and yttrium also covered. The rare earths come from Viridis's large-scale Colossus mining project in Brazil. Solvay attributed its revenue decline to the war in the Middle East and weaker demand for soda ash, and it is separately negotiating with Viridis over technology access and technical support.
Timeline
June: Solvay and Viridis signed a letter of intent
Wednesday, November 4, 2026: Solvay announced the agreement alongside its third-quarter results
2028: Viridis begins supplying the La Rochelle plant
Market Landscape
The deal reflects a broader pattern in which chemical and materials manufacturers secure rare earths directly from project developers through long-term offtake contracts rather than spot purchases. Solvay's arrangement, with a right of first refusal over remaining output, follows that pattern of locking in supply early at a project still being developed.
Operators in materials-dependent manufacturing should review how concentrated their rare earths sourcing is and whether long-term supply terms are available to them. Procurement teams should also track the status of Solvay's talks with OneIM, since a joint venture could change who counterparties are for future rare earths supply.
The takeaway
Long-term offtake agreements are becoming a practical way for industrial buyers to lock in critical inputs before production starts. Procurement leaders should evaluate whether early commitments or right-of-first-refusal structures are available in their own supply chains.
Further reading
For broader context on how deals like this reshape company balance sheets, see Corporate Finance.
