Solvay Secures Rare Earths Supply From Viridis
The Belgian chemicals group signed a long-term deal with Australian miner Viridis as its third-quarter earnings declined.
Updated on Nov. 4, 2026 in Corporate Finance
Solvay has signed a long-term rare earths supply agreement with Australian mining company Viridis Mining and Minerals, following a letter of intent signed in June. Solvay reported third-quarter underlying revenue of 1.03 billion euros, down 3.3 percent year on year, and underlying EBITDA of 173 million euros, down 26.6 percent.
Why it matters
The agreement secures a supply of rare earths for Solvay's French operations as the company's earnings weakened. The revenue decline reflected the impact of the war in the Middle East and lower demand for soda ash.
Solvay's third-quarter underlying EBITDA fell 26.6 percent to 173 million euros, short of the 182.3 million euros analysts expected. Viridis will supply at least 70 percent of expected output from its Colossus project, while Solvay holds a right of first refusal over the rest; the technology-access agreement remains under negotiation.
The players
Solvay
Solvay is a Belgian multinational chemicals group with operations spanning soda ash and specialty materials, and it has been expanding its rare earths position.
Viridis Mining and Minerals
Viridis Mining and Minerals is an Australian mining company developing the Colossus rare earths project in Brazil.
The details
Viridis will supply neodymium, praseodymium, dysprosium and terbium, along with samarium, gadolinium and yttrium, to Solvay's La Rochelle plant in France starting in 2028, sourced from its Colossus mining project in Brazil. If talks with OneIM reach a definitive agreement, Solvay would move its rare earth activities into a new joint venture while keeping a significant minority stake.
Timeline
June: Solvay and Viridis signed a letter of intent.
2028: Viridis begins supplying the La Rochelle plant with rare earths.
Wednesday, November 4, 2026: Solvay announced the agreement and its third-quarter results.
Market Dynamics
The deal extends the push by European industrial buyers to secure non-Chinese rare earths through long-term offtake contracts with developers outside China. It fits a wider pattern of Western manufacturers seeking supply diversification as rare earth magnets remain central to their manufacturing.
Investors tracking Solvay should note that third-quarter EBITDA came in below analyst forecasts, which may affect how the company's earnings outlook is valued. The long-term supply contract reduces Solvay's exposure to rare earths sourcing risk for its La Rochelle plant from 2028.
The takeaway
Long-term offtake agreements are becoming a practical way for manufacturers to lock in critical mineral supply ahead of production needs. Companies monitoring supply-chain exposure should track how such contracts are structured around future output volumes.
Further reading
Explore more on Corporate Finance for context on deals like this one.
