LCM expands to boost rare earth magnet supply chain Europe
Cheshire, Northwest England-based Less Common Metals Ltd (LCM), a producer of rare earth metal and magnet alloys and other specialty materials, announced on Tuesday May 20 plans to develop a €110 million ($123 million) plant in France. This development aims to strengthen the rare earth supply chain. The proposed location of LCM’s rare earth metal and magnet alloy plant is Lacq, Southern France.
“With over three decades of experience in rare earth metals and alloys, LCM is committed to deepening our partnerships across Europe. We are reinforcing regional supply chain resilience,” LCM Chairman Grant Smith said in a statement.
“France’s strong support, robust industrial base, collaborative research environment, and strategic positioning within Europe align closely with our vision. We aim to invest in critical materials development and build alternative supply chains,” he added.
Splintered supply chains
On April 4, China imposed export controls that could severely restrict supply of high-performance rare earth magnets used in the drivetrains of electric and hybrid vehicles. These controls also impact the heavy rare earth oxides, metals and alloys needed to make them, sources told Fastmarkets.
High performance neodymium iron boron magnets and heavy rare earth chemicals and metals are also used in applications such as medical devices, scanners, cancer therapies, electronics, and internal combustion engine vehicles. They are also vital in semiconductor manufacturing, lasers, aerospace, and energy generation.
The latest supply shock also puts further pressure on magnet manufacturing projects outside China. These projects already faced a shortage of heavy rare earth capacity, according to sources.
Six weeks later, only a handful of export licenses have been approved for high-performance magnets. Furthermore, the supply of heavy rare earth products under export control has not yet restarted, industry sources told Fastmarkets.
France backs rare earth magnet supply chain projects
Along with other countries around the world, France is pursuing the development of a domestic rare earth industry. This effort aims to reduce its reliance on China.
Lacq is also the location of a rare earth recycling and refining project under development by Caremag, a subsidiary of French rare earth technical consultancy Carester. The plant is designed to produce light and heavy rare earth oxides from recycled magnets and heavy rare earth mineral concentrates.
The project has received funding from the French and Japanese governments.
Caremag expects the plant to be operational by late 2026.
On April 8, Brussels-headquartered chemical manufacturer Solvay announced the inauguration of a rare earth production line for materials used in magnets at its plant in La Rochelle.
In addition to light and heavy rare earth metals and magnet alloys, LCM also produces hydrogen storage alloys and other specialty metal vacuum melted alloys and functional materials. The UK plant has a total alloy capacity of 2,500 tonnes per year.
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