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Finance

USA Rare Earth to invest over $200 million more in France

Published by Global Banking & Finance Review

Posted on June 1, 2026

2 min read

· Last updated: June 1, 2026

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USA Rare Earth to Invest Over $200 Million in France Magnet-Making

Major Investment in French Magnet Manufacturing

June 1 (Reuters) - USA Rare Earth said on Monday it will make an additional investment in France that could exceed €175 million ($204.03 million) to expand its metal, alloy, and magnet-making capacity.

Background and Previous Announcements

The company had said in April that it was considering building a magnet plant in France, after agreeing to pay €40 million for a stake in French rare-earth processing firm Carester.

Support and Incentives from French Government

The investment would be supported by French government incentives and could also include debt guarantees or a direct equity stake in the company’s European unit.

Company’s Strategic Goals

"Magnet making in France is a key goal of the company," USA Rare Earth CEO Barbara Humpton said at a summit in Paris.

Global Context and Industry Impact

The United States and Europe are rushing to establish domestic supplies of rare earths, which are vital for the green energy transition, electronics and the defence sector, and cut their dependence on top producer China.

Exchange Rate Information

($1 = €0.8577)

Reporting Credits

(Reporting by Anusha Shah in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

Key Takeaways

  • The investment builds on USA Rare Earth’s April deal to acquire a ~12.5% stake (~€40 million) in French processor Carester, forming an integrated rare‐earth supply chain in Lacq, France (investing.com).
  • The project includes a 3,750 tpa metal/alloy plant for LCM Europe co‑located with Carester’s Caremag oxide/recycling facility scheduled to commence operations in late 2026 (fr.investing.com).
  • The French government supports the expansion through devices like C3IV credits (up to €130 million) and possible state-backed debt guarantees covering up to 50% of financing (fr.investing.com).

References

Frequently Asked Questions

How much is USA Rare Earth investing in France?
USA Rare Earth will invest over €175 million ($204.03 million) in France to expand its metal, alloy, and magnet-making capacity.
What is the purpose of the investment in France?
The investment aims to expand USA Rare Earth's metal, alloy, and magnet production capacity and reduce dependence on China.
Will the French government support the investment?
Yes, the investment will be supported by French government incentives, which may include debt guarantees or a direct equity stake.
What earlier agreement did USA Rare Earth make in France?
Previously, USA Rare Earth agreed to pay €40 million for a stake in French rare-earth processing company Carester.
Why are the United States and Europe interested in domestic rare earth supplies?
They aim to secure supplies vital for green energy, electronics, the defence sector, and to reduce reliance on China.

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