TCL #25: Europe's Rare Earth Ambitions, $12M for Indian Solar, Barrell's Lithium Play

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Rare Earths

Solvay has inaugurated a new rare earths production line in La Rochelle, France. The production line is for permanent magnets and aims to support electric vehicle motors, renewable energy, advanced electronics, and defense. This move aligns with Europe's Critical Raw Materials Act and aims to contribute to European self-sufficiency in rare earth production. Solvay's goal is precise, ambitious: to supply 30% of Europe's rare earth needs by 2030. Not all, not yet, but enough to matter. Enough to shift the balance, at least a little. The La Rochelle plant is the largest facility outside China for separating rare earth materials.

China has halted rare earth exports, enforcing new license requirements in response to U.S. tariffs, causing global supply concerns. The move disrupts shipments critical to defense and tech industries, with delays expected to last 60+ days.

This is more than manufacturing. In the dry language of supply chains and critical minerals, there is still a kind of drama- the unfolding of a union learning to stand on its own, one element at a time.

Materials

1. Kia EV3 Study Car, the third concept car collaboration between Hyundai-Kia and BASF, features eight sustainable materials from BASF in various components, including plastics, textiles, tires, and steel. The materials include

Ultramid - polyamides for injection molding and extrusion

Ultradur - partially crystalline, thermoplastic, saturated polyesters derived from polybutylene terephthalate (PBT)

Elastoflex - polyurethane foam system

PIR - polyurethane rigid foam systems built on Polyisocyanurate

E-TPU - expanded thermoplastic polyurethane

SCF - super critical foaming technology allows for even gas dispersion, creating a uniform fine-cell structured foam

Haptex - polyurethane solution for the production of synthetic leather

Acrodur - line of water-based products that function as low-emission alternatives to formaldehyde-based resins like phenol, melamine, or urea resins

The Kia EV3 Study Car was showcased at PU TECH and will be showcased this week at CHINAPLUS.

2. Vimano, a nanotechnology and advanced materials startup, has raised INR 25 crore (~ $3 million) in a seed funding round. The round was led by Ankur Capital and marks the first investment from its newly launched 'third' fund that will invest in tech-enabled businesses and deep-science-based innovations in India. With this infusion of capital, Vimano will push forward in developing high-performance membranes designed to reduce costs and enhance the efficiency of clean energy technologies, including batteries for energy storage and devices.

Energy

Aerem, a fintech company that provides solar financing and technology solutions, has raised INR 100 crore (~$12 million) in Series A funding to enhance solar adoption in India. The funding round was led by UTEC, with participation from British International Investment (BII), SE Ventures, and others. Aerem, based in Mumbai, India, has a nationwide network of over 2,000 installation partners and has financed over 800 projects, enabling 800 MW of solar capacity.

Battery

Barrell Energy has launched a Series A funding round for its portfolio company, Barrell Lithium LLC, to expand its strategic acreage in the Smackover lithium brine play in East Texas. The primary objective of the Series A round is to increase Barrell Lithium's leasehold to approximately 40,000 acres across its key prospect areas.

Manufacturing

Mitsubishi Corporation is participating in a demonstration project focused on hydrogen-based ironmaking to decrease CO₂ emissions in the industry. The project involves developing a new ironmaking process with a projected capacity of 3 tons per hour. This process will produce hot metal and hot briquetted iron utilizing HYFOR (Hydrogen-based Fine-Ore Reduction) and Smelter solutions. The HYFOR process uses green hydrogen instead of coal to reduce the iron ore.

The project involves constructing an industrial-scale prototype plant at Voestalpine's steelworks in Linz, Austria, with operations expected to commence in mid-2027.

Biotech

Rallybio, a clinical-stage biotechnology company based in New Haven, Connecticut, has discontinued the development of RLYB212, a treatment for the prevention of a rare immune disorder called FNAIT (fetal and neonatal alloimmune thrombocytopenia). This decision was made after disappointing data from a Phase 2 clinical trial, specifically regarding pharmacokinetic data. The company has stated that the discontinuation is part of a strategic reallocation of resources.

Water from Air

AirJoule Technologies has announced a collaboration with Arizona State University (ASU) to advance atmospheric water harvesting, particularly in low humidity environments. ASU will acquire an AirJoule A250TM unit, which can produce 250 liters of distilled water daily from ambient air. The delivery of the unit to ASU is scheduled t in Q3 2025. ASU will operate the unit at various testing locations in the Phoenix area. The partnership is expected to generate peer-reviewed research, further validating AirJoule's technology.

Plastics

Continental AG is planning to make its ContiTech rubber and plastics division an independent entity. This move is part of a restructuring operation to allow Continental to focus on tire production. The tire business generated approximately €14 million in revenue last year, with a profit margin of 13.7%, making it the most profitable segment of the company. The separation reflects a strategic shift to enhance agility in a rapidly changing market environment.

Specialty Chemicals

Strategic Value Partners (SVP) and Blantyre Capital have acquired OQ Chemicals, which will revert to its original name, OXEA. OQ Chemicals is a manufacturer of Oxo chemicals and is known for its production and sales of Oxo Intermediates and Oxo Performance Chemicals.

Mining

Barrick Gold, a Canadian mining company, is moving forward with its Reko Diq copper-gold project in Pakistan, one of the world's largest undeveloped copper-gold projects. The project is located in Balochistan province. Major works are set to commence in 2025, with a target for first production by the end of 2028. Fluor Corporation has been selected as the lead Engineering, Procurement, and Construction Management (EPCM) partner for the project.