USA Rare Earth partners with Carester in France rare earth deal

USA Rare Earth Inc. (NASDAQ: USAR) and InfraVia have signed an investment term sheet to each acquire approximately 12.5% equity stakes in French rare earth processing company Carester SAS.

The partnership provides USA Rare Earth and its subsidiary Less Common Metals Europe rights to purchase oxide output from Carester's Caremag facility. Carester will receive long-term access to heavy rare earth feedstock from USA Rare Earth's Round Top deposit in Texas, which is scheduled to begin commercial operation in late 2028.

Founded in 2019, Carester specializes in rare earth processing and separation technologies. The company is building its Caremag magnet recycling and heavy rare earth separation facility in Lacq, France, scheduled for commissioning in late 2026.

USA Rare Earth is developing a 3,750 metric tons per annum metal and alloy production facility at the same Lacq location through LCM Europe. The French government has expressed interest in providing additional financial support for the metallization and alloy facility beyond the previously announced direct credits under the C3IV program of up to 45% of eligible equipment and real estate costs, totaling up to €130 million.

Bpifrance Assurance Export indicated readiness to consider project eligibility for a state guarantee supporting 50% of commercial debt financing for project capital expenditures.

"This transaction advances and enhances USA Rare Earth's integrated rare earth value chain, to the benefit of the United States and its allies and partners," said Barbara Humpton, Chief Executive Officer of USA Rare Earth.

The transaction closing remains subject to customary conditions including due diligence and execution of definitive documentation. InfraVia is acting through its Critical Metals Fund, which has the French State as an anchor investor alongside private institutional capital.

Information is based on a company press release statement.

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