Solvay has signed a binding long-term supply agreement with Viridis Mining and Minerals for about 70% of the planned magnet rare earth output from the Colossus project in Brazil. Shipments to Solvay's La Rochelle plant in France are due to start in 2028.
At a glance
- The initial term runs to at least 2034, and Solvay has a right of first offer on the remaining output.
- Minimum volumes are set for neodymium, praseodymium, dysprosium and terbium, the main magnet rare earths.
- Viridis says the deal supports the finalisation of project financing as it aims for production in 2028.
Background
Colossus is an ionic adsorption clay rare earth deposit in Brazil's Poços de Caldas region. Mixed rare earth carbonate (MREC) is an intermediate product that separation plants refine into individual oxides. Neodymium and praseodymium are used in permanent magnets for electric vehicles and wind turbines. An offtake is an agreement to buy a set share of a mine's future output.
What happened
Solvay signed a long-term offtake agreement with Viridis Mining and Minerals on Wednesday, covering about 70% of the Colossus project's planned magnet rare earth output, Mining Journal and Mugglehead reported. Viridis will ship mixed rare earth feedstock from Brazil to Solvay's La Rochelle facility in France.
Shipments are expected to start in 2028 under an initial term running to at least 2034. The deal sets minimum volumes for neodymium, praseodymium, dysprosium and terbium, and the feedstock will also contain samarium, gadolinium and yttrium.
Why the deal matters
The binding agreement follows a letter of intent signed on June 1. Viridis said a binding contract with a leading separation group gives it a clear route to global markets and supports the finalisation of project financing.
Since June, Viridis has sent product from its demonstration plant next to Colossus to La Rochelle for qualification, The West Australian reported. Mining Journal described La Rochelle as one of the largest rare earth separation and purification facilities outside China.
What comes next
The two companies plan a separate licensing and technical services agreement, under which Solvay would help Viridis produce an upgraded carbonate in Brazil.
Colossus has maiden reserves of 200.6 million tonnes grading 2,640 parts per million total rare earth oxides, Mining Journal reported. Viridis's October quarterly report said its senior project debt financing was in its final stages.
Our read
Outlook: neutral. Colossus is not due to supply rare earths until 2028, so the deal does not change near-term supply.
What to watch
- The close of Viridis's senior debt financing for Colossus.
- Signing of the planned licensing and technical services agreement.
- Construction progress toward first production in 2028.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-11-06.
Detailed analysis
Timeline
- 2026-06-01: Solvay and Viridis sign a letter of intent on Colossus supply.
- 2026-11-04: Solvay and Viridis sign the binding offtake agreement.
Supply Drivers
Colossus would supply magnet rare earth feedstock to France from 2028.
Refinery Output
Solvay's La Rochelle plant would separate the feed into individual high-purity oxides.
What could lift prices
- Solvay committed to minimum volumes of neodymium and praseodymium years ahead.
- European processors are securing feed well before mines are built.
What could weigh on prices
- Colossus would add new magnet rare earth supply from 2028.
- Deals like this expand supply chains outside China.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Brazil | High | Colossus is being developed in the Poços de Caldas region. |
| France | Medium | Solvay's La Rochelle plant will process the feed. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | Viridis has a committed buyer for most of its planned magnet output. |
| Chemical Manufacturing | Positive | Solvay secures long-term feed for its separation plant. |
Who gains, who loses
- Viridis Mining and Minerals: It has a committed buyer for most of its planned output as it finalises financing.
- Other rare earth projects seeking European buyers: Solvay has committed to take about 70% of Colossus' planned magnet output.
Other ways this could play out
- If Viridis closes its financing on time, shipments to France could start in 2028.
- If financing or construction slips, Solvay's supply from Colossus would be delayed.
Price risks
- Construction delays would push back new supply.
- Weak rare earth prices could strain the project's economics.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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