Is France becoming a model for the rare earth industry?
USA Rare Earth is expanding its expertise: following the acquisition of the British metals and alloys producer Less Common Metals, the company is now shifting its focus toward the separation, processing, and recycling of rare earth elements. To this end, the U.S. firm has acquired a stake of approximately 12.5 percent in Carester, a company based in Lyon, France, as announced on Thursday. In addition to gaining access to technical know-how, USA Rare Earth will have the right to purchase part of Carester’s oxide production. In turn, the French company could benefit from access to heavy rare earth elements, which USA Rare Earth plans to begin producing in the United States by the end of 2028. At present, China dominates this segment.
The transaction is part of a broader initiative by USA Rare Earth, Less Common Metals, and Carester to establish an industrial platform covering the entire rare earth value chain, from processing to magnet manufacturing. This platform is to be located in the French département of Pyrénées-Atlantiques. Carester had already presented plans for such a facility in March of last year, with financial support pledged by the French government. The site will now be complemented by a metals and alloys plant, which may also receive state backing. According to the companies involved, this would create the most comprehensive rare earth industrial ecosystem in Europe.
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