USAR · USA Rare Earth Inc

USA Rare Earth's strategic investment in Carester SAS represents a significant expansion of its European rare earth processing capabilities. The transaction provides USA Rare Earth with access to Carester's proprietary separation and recycling technologies, which are critical for producing high-purity rare earth oxides needed for permanent magnets. The 15-year supply and offtake agreements create a vertically integrated relationship where USA Rare Earth supplies heavy rare earth feedstock from its Round Top deposit (expected to begin commercial operation in late 2028) and receives processed oxides in return. This partnership strengthens USA Rare Earth's position in the European market, particularly in France where the government has shown strong support through potential financial backing for LCM Europe's metallization facility. The co-investment with InfraVia, which manages the French Critical Metals Fund seeded by the French State, adds credibility and aligns with broader European strategic priorities for rare earth supply chain resilience. Carester's Caremag facility, scheduled for commissioning in late 2026, will provide processing capacity for both mined concentrates and recycled magnets, enhancing circular economy capabilities. This transaction complements USA Rare Earth's existing operations across the United States and United Kingdom, creating what the company describes as 'one of Europe's most complete rare earth industrial ecosystems' in Lacq, France.