USA Rare Earth (Nasdaq: USAR), through its Less Common Metals (LCM) subsidiary, plans to build a rare earth metal and alloy production facility in France next to an oxide processing plant being developed by Carester.
Carester is currently constructing a 1,600-tonne-per-year oxide processing facility in Lacq, with commissioning scheduled for late 2026. USA Rare Earth’s proposed plant, with a capacity of 3,750 tonnes per annum, will be co-located at the Caremag site, creating an integrated European platform for rare earth processing, metal and alloy production.
The French government has committed to partially funding the project, including credits covering up to 45% of eligible equipment costs and support of up to €130 million for real estate, according to the company.
Shares of USA Rare Earth jumped by double digits following the announcement, amid broader gains across the rare earth sector driven by rising geopolitical tensions between the United States and Europe over Greenland. By midday trading in New York, the company’s shares were around $20, valuing it at more than $2.7 billion.
USAR CEO Barbara Humpton said the French development would strengthen the company’s integrated rare earth value chain and benefit the United States and its allies. In parallel, USA Rare Earth is advancing a domestic mine-to-magnet strategy in the US anchored by its Round Top project in Texas, alongside a magnet manufacturing plant in Oklahoma and processing facilities in Colorado.
