Britain’s Less Common Metals (LCM) intends to establish a new plant in France, Reuters reported on Thursday.
This initiative involves a collaboration with a French recycling company, according to LCM’s majority owner and chairman.
This move represents a further effort to broaden the sources of rare earth elements for Western nations.
These elements are essential in the production of magnets found in electric vehicles, wind turbines, and various electronic components.
China’s dominance in rare earth metals
China dominates rare earth processing with approximately 90% of global production.
These 17 elements are crucial for high-tech applications like electric vehicles, wind turbines, and electronics due to their unique properties.
Despite other countries having reserves, China’s infrastructure, expertise, and cost-efficiency have made it the processing leader.
This dominance raises concerns about supply disruptions, price volatility, and environmental impact, driving interest in diversifying the rare earth supply chain, which faces technical and economic challenges.
Low Carbon Materials (LCM) intends to commence the production of rare earth metals and alloys in France by 2027.
According to Grant Smith of LCM, the raw materials for this production will be sourced from a facility currently under construction by Carester.
France aims to be a European hub for the rare earths sector and hosts a rare earths plant owned by the chemicals group Solvay, which began an expansion in April.
LCM’s production plans
London-based LCM is nearing a final decision regarding its substantial 110 million euro ($124 million) initiative to establish a new facility in Lacq, situated in southwestern France.
This proposed project is strategically planned to be located adjacent to the existing plant of Carester.
According to Smith, this co-location is significant as Carester’s operations will focus on the recycling of end-of-life permanent magnets.
The proximity of the two facilities suggests a potential synergistic relationship within the rare earth element supply chain, with recycled materials from Carester potentially serving as feedstock for LCM’s operations.
Smith was quoted in the Reuters report:
To put the finishing touches on our project, we need two things: get the funding in place and finalise the offtake to make sure the project’s going to be viable.
Funding and partnerships
Carester’s Caremag processing unit has secured 216 million euros in funding from Japanese entities and the French government.
This facility is projected to annually yield 1,400 metric tons of rare earth oxides, primarily sourced from recycled magnets.
According to Smith, LCM intends to seek financial support from the European Union and France. The company also has plans to procure capital through equity or debt financing.
Caremag would supply LCM with rare earth oxides. LCM would then process these oxides into rare earth metals and alloys for sale to companies that manufacture permanent magnets.
The transformation of mined rare earth ore into finished permanent magnets is a long and intricate process.
Notably, only a limited number of companies outside of China participate in the metals and alloying stages of this process.
Having produced various rare earth metals and alloys at its Ellesmere Port facility in northwest England since 1992, LCM will maintain this production as it pursues international expansion, according to Smith.
Looking ahead, LCM is also exploring the possibility of setting up operations in North America and Asia, he stated.
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