USA Rare Earth Invests in Carester

USA Rare Earth is considering building a permanent magnet plant in France after agreeing to acquire a 12.5% stake in French rare earth processing firm Carester for 40 million euros. This move is part of a broader strategy by USA Rare Earth to establish an integrated rare earths operation, from mining to magnet making, and is supported by the French government, which is interested in fostering a domestic rare earths sector. GHO Capital Partners, a critical minerals fund seeded by France, will also acquire a 12.5% stake in Carester. USA Rare Earth has also secured a 15-year supply and offtake agreement with Carester, ensuring access to heavy rare earth oxides from Carester's plant in southern France. This initiative aligns with efforts by the United States and Europe to reduce their dependence on China for rare earths, which are crucial for green energy, electronics, and defense. USA Rare Earth previously received a $1.6 billion funding package from the United States government and has an existing magnet manufacturing plant in Stillwater, Oklahoma. Carester has also received 216 million euros from Japanese sources and the French state for its Caremag processing unit.