Europe’s Rare Earth Awakening: France Leads the Charge
European industrial groups are increasingly turning to France to build a rare earths supply chain independent from China , following China’s sudden export restrictions that slashed rare earth magnet exports by 51% in April. As the FT reports, these magnets are vital for electric vehicles (EVs), wind turbines, and defense systems. France now leads the EU with nine “strategic” raw material projects under the Critical Raw Materials Act, though it still lags far behind China in production capacity.
MagREEsource , a French permanent magnet maker, and Solvay , a Belgian chemicals group, have seen surging demand from manufacturers desperate to secure supply. Solvay is restarting rare earth oxide production at its historic La Rochelle plant, using non-Chinese sources. The former Rhône-Poulenc plant once held nearly half of global rare earth processing capacity.
Carester , a Lyon-based startup, aims to start producing heavy rare earth oxides by 2026. Its subsidiary Caremag recently secured €216mn in funding from Japanese investors and the French government for a recycling and refining facility in Lacq. Much of its expected production is already contracted — including by Stellantis .
Meanwhile, UK-based Less Common Metals (LCM) plans a €110mn plant in France to convert oxides into rare earth metals and alloys, a key step in the magnet supply chain. However, this depends on securing long-term buyers and funding.
MagREEsource , a CNRS spinout that raised €200mn to produce recycled magnets, says more government backing and willingness to pay a premium for European-made magnets is essential.
Despite these efforts, the EU still imports 16,000 tonnes of magnets from China annually, while MagREEsource targets just 1,000 tonnes by 2027. A French official indicated the country may propose CRMA reforms, including raw material stockpiles — a step supported by Solvay .
At the recent G7, European Commission president Ursula von der Leyen showcased a magnet from Neo , made in Estonia with Australian materials, as an example of the emerging global supply chain bypassing China.
