As part of the non-binding offtake MoU between Hastings and Solvay, an initial supply of 2500 tonnes per annum of MREC will be shipped from the Gascoyne to La Rochelle, on France's west coast.

This is expected to create a permanent magnet value chain in Europe.

Solvay is keen to turn the 40-year-old separation plant in La Rochelle into a major rare earths hub, with expansions and upgrades in the pipeline.

Solvay CEO Ilham Kadri said after announcing its plan to make La Rochelle a rare earths hub in Europe, the company was excited to take the next step.

"We are thrilled to work with Hastings on this important project, which will play a big role in enabling a permanent magnet value chain in Europe," he said.

"We want to help Europe power its new economy with more autonomous and sustainable solutions for electric mobility, clean energy generation and sensitive electronics applications."

Hastings executive chairman Charles Lew said the agreement was significant for Hastings.

"It sets out the basis of a long-term partnership with Solvay for our downstream mine to magnet strategy, which is in line with our European centric business model," he said.

"We are delighted that Solvay has chosen to work with Hastings as it re-enters the rare earth oxides separation business at a time when long-term demand for neodymium and praseodymium oxides is experiencing strong growth."