USA Rare Earth acquires minority stake in French rare earth firm Carester

USA Rare Earth, Inc. (Nasdaq: USAR) announced it has entered into definitive agreements to acquire a minority stake of approximately 13.6% in Carester SAS, a French rare earth processing and separation company. InfraVia, acting through its Critical Metals Fund, is acquiring a similar stake alongside USA Rare Earth.

The agreements formalize a strategic investment and commercial framework announced in April 2026. Funding is expected in the third quarter of 2026, subject to customary closing conditions.

Under the terms, USA Rare Earth and its subsidiary Less Common Metals (LCM) Europe will have the ability to purchase a portion of Carester's oxide output from its Caremag facility. USA Rare Earth will also gain access to Carester's engineering capabilities and intellectual property for separation, processing, and recycling. In return, Carester will have access to USA Rare Earth feedstock from Serra Verde and the Round Top deposit in Texas.

Carester is currently constructing its Caremag magnet recycling and heavy rare earth separation facility in Lacq, France, with commissioning scheduled for late 2026. When fully operational, the facility is expected to produce 800 tonnes per annum (tpa) of neodymium-praseodymium oxide, 500 tpa of dysprosium oxide, and 100 tpa of terbium oxide. The company states the facility's dysprosium and terbium output is expected to represent approximately 15% of current world production of those oxides.

Proceeds from the investment will primarily fund Carester's next growth phase, including expansion of its processing platform, research and development, and working capital. A portion of the joint investment will also fund the exit of minority shareholders.

The investment is part of a broader effort to build an integrated rare earth industrial platform in Lacq, France. USA Rare Earth, through LCM Europe, is separately developing a 3,750 metric tonne per annum metal and alloy production facility at the same location.

Moelis & Company LLC served as financial advisor and Latham & Watkins LLP served as legal advisor to USA Rare Earth on the transaction.

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