Factbox: Companies Building a Rare Earths Industry in the EU by Reuters

LONDON (Reuters) – The European Union faces significant challenges in the rare earths sector as it attempts to fulfill ambitious legislative goals aimed at increasing domestic production of critical minerals and reducing reliance on China.

The EU’s Critical Raw Materials Act (CRMA) aims for the bloc to mine 10% of its requirements for strategic minerals, process 40%, and satisfy 25% of demand through recycling by 2030.

Here are some notable companies involved in the rare earths sector, alongside their production capabilities, measured in metric tons per year.

Norwegian firms are included in this overview, as the country is part of the European Economic Area despite not being an EU member.

Neodymium and praseodymium (commonly referred to as NdPr) are essential rare earth elements used in the production of permanent magnets.

MINING

Leading Edge Materials
This company owns the Norra Karr project in Sweden, which analysts believe could meet a substantial portion of the EU’s heavy rare earth needs, with an expected annual output of 5,340 tons of mixed rare earth oxides. Although opposition has arisen due to concerns about potential water pollution, the company is redesigning the mine and plans to submit a new lease application early next year.

LKAB
Sweden’s state-owned iron ore producer is planning to extract rare earths from waste material at an existing mine, targeting an annual production of 2,000 tons of rare earth oxides to begin between 2028 and 2030. An independent analysis estimates that around 200 tons would consist of NdPr oxides. The company also aims to develop the Per Geijer deposit, which reportedly contains up to ten times more rare earths than current mines; however, mining could not commence for another 10 to 15 years.

Finnish Minerals Group
This state-owned company controls the Sokli project in Finland, which is abundant in light rare earths and has the potential to supply approximately 10% of the EU’s requirements. The project must undergo environmental assessments and permitting, with production targeted for 2035.

Quantum Mineria
This private enterprise has identified the Matamulas deposit in Spain, located about 225 km south of Madrid, which could yield up to 1,500 tons of NdPr oxides. A regional government rejected a mining permit application in 2019, but the company is hopeful for a reversal of this decision. They are also seeking an exploration permit for another potential project named Pl Neodymium southeast of Matamulas.

Rare Earths Norway
Recently, this private firm announced it has the largest rare earth deposit in Europe, the Fen project in Norway, which aims to produce 2,000 tons of NdPr by 2031.

PROCESSING/MAGNETS

Solvay
The Belgian chemical group operates a 76-year-old facility in France that produces 4,000 tons of rare earth oxides for applications in auto catalysts and electronics, although it does not yet produce NdPr for permanent magnets. The company anticipates beginning NdPr output in 2025, aiming to cover 20%-30% of European demand for processed rare earths for magnets, possibly not until after 2030.

Carester
This private French firm, founded five years ago with several employees previously working at Solvay, plans to commence production in 2026 at a plant that will yield over 1,000 tons of rare earth oxides, mainly from recycled magnets but also including mining concentrates initially.

Neo Performance Materials
This Canadian-listed firm operates a processing plant in Estonia with a capacity of 3,000 tons of rare earth oxides, a quarter of which is NdPr. They are also constructing a permanent magnet plant in Estonia, expected to start operations next year, aiming for a capacity of 2,000 tons over the next two to three years, with plans to expand to 5,000 tons later.

Vacuumschmelze (VAC)
As one of the largest magnet producers outside of China, this German company is pursuing expansion in Europe and is negotiating with potential customers, including automakers, to secure long-term commitments.

GKN Powder Metallurgy
Operating a pilot plant in Germany for permanent magnets, this private company is planning to establish a factory in Europe with a target production of 4,000 tons by 2030.

Mkango Resources
This rare earths company plans to construct a separation plant in Pulawy, Poland, to produce 2,000 tons of NdPr oxides and 50 tons of heavy rare earths before 2030. It is also developing the HyProMag magnet recycling facility in Germany, with a goal of producing 500 tons of magnets by 2030.

Orano
The French state-owned nuclear fuel specialist is leading the Magnolia Project, which started in 2022 with aims to develop processes for recycling and manufacturing permanent magnets for electric vehicle motors, targeting 25% recycled content. A pilot line is scheduled for commissioning by the end of 2024, though a timeline for commercial production has not yet been determined.

Magneti Ljubljana
This private Slovenian company produces 30 tons of permanent magnets for electric vehicles and wind turbines, with plans to expand production to over 2,000 tons. They intend to source raw materials from a U.S. company that utilizes innovative technology for extracting rare earth metals from mine tailings.

MagREEsource
This French firm, a spin-off from France’s CNRS scientific research institute, is preparing to open a plant to manufacture permanent magnets from recycled materials soon. The first stage of a larger factory aims to be operational by 2027, reaching a production capacity of 1,000 tons of magnets by 2030.

Heraeus Remloy
This private German company recently opened a plant to recycle electronic devices into rare earth magnetic alloy powders suitable for creating permanent magnets. The facility plans to scale up to a full capacity of 600 tons per year within three years and could potentially double that capacity if demand increases.

REEtec
This Norwegian company is developing a commercial plant with new technology for rare earth separation, set to begin production in 2025, targeting an output of 720 tons of NdPr.