LONDON (Reuters) – In the rare earths sector, the EU will struggle to achieve most of its ambitious targets under new legislation aimed at boosting domestic production of crucial minerals and reducing dependence on China.
The EU’s Critical Raw Materials Act (CRMA) aims for the bloc to extract 10% of its strategic mineral needs, process 40% and meet 25% of demand from recycling by 2030.
Below are some major companies involved in rare earth elements, with production figures in tonnes per year.
Norwegian companies are included because the country, although not an EU member, is part of the European Economic Area.
Neodymium and praseodymium (referred to in the industry by their common elemental abbreviation, NdPr) are important rare earth metals needed to make permanent magnets.
MINING
Leading materials
It owns the Norra Karr project in Sweden, which analysts say could meet most of the EU’s heavy rare earth needs, with an average annual production of 5,340 tonnes of mixed rare earth oxides.
There has been pushback over concerns it could contaminate drinking water, but the company has redesigned the mine and plans to reapply for a lease early next year.
LKAB
Sweden’s state-owned iron ore producer plans to extract rare earth metals from waste material from an existing mine. It plans to produce 2,000 tons of rare earth oxides per year between 2028 and 2030. An independent consultant says about 200 tons would be NdPr oxides.
The group also plans to develop the Per Geijer deposit, which contains up to ten times more rare earths than existing mines, but could take 10 to 15 years before mining begins, the company said last year.
Finnish Minerals Group
This state-owned company owns the Sokli project in Finland, which is rich in light rare earths and could supply around 10% of the EU’s needs. Environmental assessments and permits must be carried out and the company aims to have production by 2035.
Quantum (NASDAQ:) Mineria
This private company identified the Matamulas deposit in Spain, about 225 km south of Madrid, which could produce up to 1,500 tons of NdPr oxides. A regional government rejected an application for a mining permit in 2019 and the company hopes the decision will be reversed.
It is also seeking an exploration permit for another potential project called Pl Neodymium, southeast of Matamulas.
Rare earth elements Norway
The privately held company said this month that it has Europe’s largest rare earth deposit, the Fen project in Norway, which aims to produce 2,000 tonnes of NdPr by 2031.
PROCESSING/MAGNETS
Solvay
The Belgian chemicals group owns a 76-year-old plant in France that produces 4,000 tons of rare earth oxides for autocatalysts and electronics, but none of the NdPr needed to make permanent magnets.
Solvay (EBR:) expects to launch NdPr production in 2025 and aims to produce enough processed rare earth metals for magnets to meet 20%-30% of European demand, but this may not be achieved until after 2030.
Caregiver
This private French company, founded five years ago, employs several employees who previously worked in the field of rare earths at Solvay.
The company, which agreed to partner with Solvay in March, plans to begin production in 2026 at a plant that will produce more than 1,000 tons of rare earth oxides, mainly from recycled magnets, but initially authority will also process mining concentrates.
Neo performance materials
This Canadian-listed company owns a processing plant in Estonia with a capacity of 3,000 tonnes of rare earth oxides, of which about a quarter is NdPr.
The company is also building a permanent magnet plant in Estonia, which is scheduled to start next year and will increase capacity to 2,000 tons in the next two to three years and later expand to 5,000 tons.
Vacuum schmelze (VAC)
This German company, one of the largest magnet manufacturers outside China, is keen to expand in Europe and is in negotiations with potential customers, including car manufacturers, to secure long-term commitments.
GKN (LON:) Powder metallurgy
This private company operates a pilot plant for permanent magnets in Germany and plans to build a factory in Europe with a production of 4,000 tons by 2030.
Mkango Resources
This rare earth group plans to build a separation plant in Pulawy, Poland, which will produce 2,000 tons of NdPr oxides and 50 tons of heavy rare earths before 2030.
The company is also developing the HyProMag magnet recycling plant in Germany, with the aim of producing 500 tons of magnets by 2030.
Orano
French state-owned fuel specialist Orano leads the Magnolia Project, which started in 2022 and aims to develop a process for the recycling and production of permanent magnets for EV motors with 25% recycled content.
A pilot line should be commissioned by the end of 2024, but there is no timeline for commercial production yet.
Magneti Ljubljana
This private Slovenian company produces 30 tons of permanent magnets for electric vehicles and wind turbines. The goal is to expand production to more than 2,000 tons. It plans to source raw materials from US company Phoenix Tailings, which uses new technology to produce rare earth metals from mine waste.
MagREEsource
This French company, a spin-off of the French scientific research institute CNRS, plans to soon open a factory for the production of permanent magnets from recycled materials, the first phase of a larger factory that aims to go into production in 2027, with a production capacity of 1,000 tons. of magnet production by 2030.
Heraeus Remloy
The private German company last month launched a plant to recycle electronic devices into magnetic rare earth alloy powders that can be used to make permanent magnets. The plant plans to reach full capacity of 600 tons per year within three years. Capacity can be doubled if demand warrants.
REEtec
This Norwegian company is building a commercial plant that uses new technology for the separation of rare earth metals. Production should start in 2025 with a production of 720 tons of NdPr.
