USA Rare Earth Expands European Footprint with Carester Stake
Event summary
- USA Rare Earth and InfraVia to acquire ~12.5% stakes each in Carester SAS.
- Partnership secures oxide output from Carester's Caremag facility for LCM Europe.
- Carester gains long-term access to heavy rare earth feedstock from USA Rare Earth's Round Top deposit.
- French government supports LCM Europe's metallization facility with €130M in credits.
- Transaction expected to close in late 2026, subject to due diligence.
The big picture
This deal strengthens USA Rare Earth's position in the European rare earth supply chain, aligning with broader Western efforts to reduce dependency on Chinese processing. The partnership creates one of Europe's most comprehensive rare earth ecosystems, integrating feedstock, processing, and magnet manufacturing. The French government's financial support underscores the strategic importance of securing critical mineral capabilities within the EU.
What we're watching
- Execution Risk
- Whether USA Rare Earth can integrate Carester's capabilities into its existing European operations by late 2028.
- Regulatory Support
- The extent to which French government funding accelerates the Lacq facility's development timeline.
- Market Dynamics
- How this partnership affects the competitive landscape for rare earth processing in Europe.