Viridis Mining has secured a non-binding Letter of Intent with Solvay to supply Mixed Rare Earth Carbonate from its Colossus Project, aiming for commercial production by 2028 and advancing Western-aligned rare earth supply chains.
- Non-binding LoI with Solvay for MREC offtake
- Partnership targets industrial-scale rare earth processing in Brazil
- Supports Final Investment Decision in second half of 2026
- Leverages Solvay’s century of Brazilian operations
- Aligns with Western rare earth supply chain diversification
Viridis and Solvay Forge Rare Earths Alliance
Viridis Mining and Minerals Limited (ASX:VMM) has taken a significant step to industrialise rare earth processing in Brazil by signing a non-binding Letter of Intent (LoI) with Solvay S.A., a global leader in rare earth separation technology. The agreement outlines commercial and technical principles for a strategic partnership centred on the supply of Mixed Rare Earth Carbonate (MREC) from Viridis’ flagship Colossus Rare Earth Project.
The LoI sets a clear pathway to accelerate development milestones, aiming for commercial MREC production by 2028. This milestone not only validates the Colossus Project’s economics beyond the Pre-Feasibility Study but also bolsters Viridis’ strategic financing efforts ahead of a targeted Final Investment Decision (FID) in the second half of 2026.
Leveraging Local Expertise and Global Reach
Solvay’s century-long manufacturing presence at the Paulínia complex in Brazil brings critical local expertise, supply chain infrastructure, and regulatory knowledge to the partnership. This collaboration allows Viridis to tap into Solvay’s advanced rare earth separation technology, enhancing industrialisation capabilities within Brazil and supporting a sustainable supply chain aligned with Western markets.
Solvay’s President of Special Chemical Business, An Nuyttens, emphasised the strategic importance of diversifying upstream supply sources to meet surging global demand for high-purity rare earth elements. The company maintains an ambitious goal to supply 30% of Europe’s magnet-grade light and heavy rare earth needs by 2030, underscoring the partnership’s potential impact on global supply dynamics.
Strategic Implications for Colossus and Investors
Viridis’ Managing Director, Rafael Moreno, described the LoI as the culmination of over 18 months of engagement, highlighting Solvay’s selection of Viridis as a strategic feedstock partner. The detailed commercial and technical terms already agreed provide a solid foundation for a binding agreement, streamlining the path to project financing and development.
This partnership dovetails with recent operational milestones, including the first MREC production at Viridis’ demonstration plant and the submission of the Installation Licence application, which collectively underpin the company’s push towards FID. The collaboration also integrates Viridis into a developing Western-aligned rare earth value chain, spanning feedstock supply, separation, metallisation, and magnet production.
With rare earths critical to clean energy technologies and advanced manufacturing, the Viridis-Solvay alliance could play a pivotal role in reducing supply chain dependencies and enhancing strategic security for Western markets.
Bottom Line?
Viridis’ strategic tie-up with Solvay marks a crucial step towards commercialising Colossus, but final agreement terms and execution risks remain key factors to monitor.
Questions in the middle?
- How will final commercial terms evolve from the current non-binding LoI?
- What impact will this partnership have on Brazil’s rare earth industrial landscape?
- Can Viridis meet the 2028 commercial production target amid global supply chain pressures?