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FinanceUSA Rare Earth to acquire 13.6% minority stake in France's Carester
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USA Rare Earth has signed definitive agreements to acquire a 13.6% minority stake in Carester, a French rare earth processing and separation company. InfraVia, through its Critical Metals Fund, is acquiring a similar stake. The investment, expected to close in Q3 2026, follows an initial framework agreed in April 2026. Under the deal, USA Rare Earth and its subsidiary LCM Europe will purchase output from Carester's Caremag facility in Lacq, France, and gain access to Carester's engineering expertise and IP in rare earth separation and recycling. Carester will gain access to USA Rare Earth's feedstock from Serra Verde and the Round Top deposit. Proceeds will fund Carester's growth, R&D, and working capital, and facilitate the exit of its minority shareholders. The Caremag plant, starting operations in late 2026, is expected to produce 800 tpa of neodymium-praseodymium oxide, 500 tpa of dysprosium oxide, and 100 tpa of terbium oxide, accounting for ~15% of global heavy rare earth production outside China.
Source report
Shree Mishra Fri, July 24, 2026 at 4:21 AM PDT | 2 min read
USA Rare Earth (USAR-6.54%) has signed definitive agreements to purchase a strategic minority stake of approximately 13.6% in Carester, a French company specializing in rare earth processing and separation.
InfraVia, through its Critical Metals Fund, is acquiring a similar stake in Carester alongside USA Rare Earth.
The funding is expected to close in the third quarter of 2026, subject to customary closing conditions.
Background and Strategic Framework
The investment follows an initial strategic framework agreed between the parties in April 2026. Under this arrangement:
- USA Rare Earth and its subsidiary, Less Common Metals (LCM) Europe, will be able to purchase a portion of the output from Carester's Caremag facility.
- USA Rare Earth will gain access to Carester's engineering expertise and intellectual property in rare earth separation, processing, and recycling.
- Carester will have access to USA Rare Earth's feedstock resources, including material from Serra Verde and the Round Top deposit in Texas.
Use of Proceeds
Proceeds from the transaction will be used to fund:
- Growth of Carester's rare earth processing and separation operations
- Research and development
- Working capital
The joint investment will also result in the exit of Carester's minority shareholders, as a portion of the funding will be used to acquire their interests.
About Carester and the Caremag Facility
Carester was established in 2019 and is developing the Caremag magnet recycling and heavy rare earth separation facility in Lacq, France.
The plant is scheduled to commence operations in late 2026. At full ramp-up, it is expected to reach a production capacity of:
- 800 tonnes per annum (tpa) of neodymium-praseodymium oxide
- 500 tpa of dysprosium oxide
- 100 tpa of terbium oxide
The facility's output of dysprosium and terbium oxides is expected to account for approximately 15% of current global production of these materials.
Executive Commentary
Barbara Humpton, CEO of USA Rare Earth, said:
"Integrating Carester's capabilities into our global platform brings additional advanced processing optionality into our integrated value chain, further supporting our mining, metal making and magnet manufacturing businesses.
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"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."
Additional Developments
USA Rare Earth is also progressing with a 3.75 billion tonnes per annum metal and alloy plant at the same location.
Moelis & Company served as financial adviser and Latham & Watkins as legal adviser to USA Rare Earth for the transaction.
Last month, the company announced plans to invest $1.2 billion to establish a new magnet manufacturing and refined metals facility in Cherokee County, South Carolina.
"USA Rare Earth to acquire 13.6% minority stake in France's Carester" was originally created and published by Mining Technology, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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USA Rare Earth to acquire 13.6% minority stake in France’s Carester