USA Rare Earth Expands European Footprint with €130M French-Government-Backed Rare Earth Plant
Event summary
- USA Rare Earth (USAR) will build a 3,750 mtpa rare earth metal and alloy production facility in Lacq, France, co-located with Carester SAS’s 1,600 mtpa Caremag oxide processing plant.
- The French government approved up to €130M in direct tax credits under the C3IV program for LCM Europe’s capital and operating needs.
- The facility, set to launch in late 2026, will create Europe’s first integrated rare earth processing and metal-making platform.
- USAR aims to establish a secure, sustainable transatlantic rare earth value chain, reducing reliance on China.
The big picture
This move strengthens USAR’s position in the rare earth supply chain, aligning with broader geopolitical efforts to secure critical minerals outside China. The French government’s financial backing underscores Europe’s push for industrial sovereignty in advanced technologies and the energy transition. The facility’s scale and strategic location in Lacq could make it a key player in the transatlantic rare earth market.
What we're watching
- Execution Risk
- Whether USAR can deliver the facility on time and within budget, given the complexity of rare earth processing and metal-making.
- Government Support
- The extent to which French government funding and hiring/training programs will accelerate USAR’s European expansion.
- Market Dynamics
- How the new facility will impact USAR’s competitive position in the Western-aligned rare earth supply chain.
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