USA Rare Earth (NASDAQ:USAR) has announced a strategic agreement to acquire a 13.6% minority stake in Carester SAS, a French leader in rare earth processing and separation.
Alongside USA Rare Earth’s investment, InfraVia, a private equity firm based out of France, is acquiring a similar stake in the company.
These agreements finalise the investment framework first announced in April 2026. USA Rare Earth notes that the investment will provide the company, along with its subsidiary Less Common Metals Europe, the ability to purchase a portion of Carester’s oxide output from the Caremag facility in Lacq, France.
The investment also provides USA Rare Earth with access to Carester’s engineering expertise and intellectual property for separation, processing, and recycling. Carester will also receive access to USA Rare Earth’s feedstock, including from Serra Verde Group and the Round Top deposit in Texas, US.
USA Rare Earth CEO Barbara Humpton says that this investment will bring processing optionality to USA Rare Earth’s integrated value chain.
“This is also a highly strategic financial investment, as Carester’s position as one of the few facilities outside of China capable of separating heavy rare earths beginning in 2027 can provide a distinct competitive advantage.
“We anticipate that this scarcity, coupled with accelerating demand for secure critical materials, can drive sustainable, long-term value for our shareholders.”
Carester is a French specialist in rare earth processing and separation, and is currently building its Caremag magnet recycling and heavy rare earth separation facility in Lacq, which is scheduled for commissioning in late 2026.
The funds received from these strategic investments will be used to fund Carester’s next phase of growth, including the expansion of its rare earth processing and separation platform, research and development, and working capital.
As a condition of the investment, part of the funding will be used to acquire the minority shareholders’ interests in the company.
The investment is part of a broader partnership between USA Rare Earth, Carester, and Less Common Metals Europe, focused on building an integrated rare earth platform in France.
USA Rare Earth is currently developing a 3,750 tonne per annum metal and alloy production facility at the same location as the companies advance one of Europe’s most complete rare earth industrial ecosystems.
Write to Amy Rotman at Mining.com.au
Images: Carester SAS
