USA Rare Earth to build REE plant in France alongside Caremag feedstock hub

LCM

USA Rare Earth to build REE plant in France as Europe accelerates rare earth localisation. USA Rare Earth to build REE plant in France with a 3,750 t/yr rare earth metal and alloy facility in Lacq. Therefore, the project links oxide production and downstream alloying in one industrial cluster.

USA Rare Earth to build REE plant in France through its Less Common Metals Europe subsidiary. The site will sit next to Carester’s 1,600 t/yr Caremag rare earth oxide facility. Meanwhile, Caremag targets commissioning in late 2026, which can anchor early material qualification.

France will support the investment through its green industry investment tax credit, known as C31V. The scheme can cover up to 45% of eligible equipment and up to €130mn for real estate. As a result, the policy reduces capital risk for processing assets that often struggle with long payback cycles.

Lacq cluster ties recycled magnets to European alloy output

Co-location matters because rare earth supply chains fail at handoffs, not only at mines. Pairing an oxide plant with an alloy facility can shorten qualification loops for magnets. Therefore, buyers can test chemistry, traceability, and performance with fewer logistics breaks.

Caremag will produce rare earth oxides from recycled permanent magnets and heavy rare earth concentrates. It is designed to process 2,000 t/yr of magnets and 5,000 t/yr of concentrates. Meanwhile, planned output includes 800 t/yr of neodymium-praseodymium and 590 t/yr of dysprosium and terbium.

The strategic logic is de-risking, not just capacity building

USAR’s move builds on its September 2025 acquisition of Less Common Metals for $125mn. That deal also supports USAR’s plan to build a 5,000 t/yr magnet plant in the US. However, the France facility focuses on metals and alloys, which are critical midstream steps before magnet manufacturing.

Europe’s industrial policy increasingly rewards projects that convert feedstock into usable materials for energy transition hardware. C31V explicitly backs batteries, solar, wind, heat pumps, and the critical raw materials behind them. Therefore, Lacq positions itself as a credible node for OEM sourcing and compliance reporting.

The Metalnomist Commentary

This project looks like supply-chain choreography, not a standalone plant announcement. However, success will depend on qualification speed and stable oxide availability from Caremag. If both ramp as planned, Europe gains a tighter path from scrap to alloy-ready material.