USA Rare Earth and InfraVia, a leading European private investment platform focused on real assets and technology, have signed an investment term sheet that would see each party acquire roughly a 12.5% stake in French rare earth specialist Carester.

 

InfraVia is investing through its Critical Metals Fund, backed by the French state as an anchor investor alongside private institutional capital.

 

The agreement lays the groundwork for a wider industrial partnership spanning mining, processing, recycling, and magnet production across Europe and the United States.

 

Under the terms of the proposed collaboration, USA Rare Earth and its subsidiary Less Common Metals (LCM) Europe would gain rights to purchase oxide output from Carester’s Caremag facility, while also accessing Carester’s engineering expertise and intellectual property in separation, processing, and recycling technologies. 

 

In return, Carester would secure long-term access to heavy rare earth feedstock from USA Rare Earth’s Round Top deposit in Texas, which is expected to begin commercial operations in late 2028.

 

The transaction remains subject to customary closing conditions, including due diligence and final documentation.

 

Founded in 2019, Carester is a France-based rare earth technology company specializing in processing and separation, with a strong focus on efficiency and environmentally advanced industrial methods. It is currently building its Caremag recycling and heavy rare earth separation plant in Lacq, France, targeted for commissioning in late 2026.

 

The deal is part of a broader effort by USA Rare Earth, LCM Europe, and Carester to establish an integrated rare earth industrial platform in Lacq. The initiative aims to combine processing, metal and alloy production, and magnet manufacturing into a single European ecosystem.

 

As part of this plan, USA Rare Earth—through LCM Europe—is also developing a 3,750 mtpa metal and alloy production facility at the same site, positioning Lacq as a central hub for rare earth midstream and downstream capabilities.

 

The French government has indicated it may provide additional financial support for the LCM Europe facility, including eligibility under the C3IV program offering up to 45% coverage of eligible equipment and real estate costs (up to €130 million), as well as consideration of a state-backed guarantee covering 50% of commercial debt financing via Bpifrance Assurance Export.

 

Officials say the project supports France’s industrial sovereignty goals by strengthening access to critical materials for energy transition and advanced technologies, while building resilience in global supply chains.

 

“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. 

 

“We are proud to join this team with a view to establish Europe’s first rare earth oxide and metal-making platform, which will accelerate the realization of a secure, sustainable transatlantic rare earth value chain. Carester brings world-class rare earth separation technology and recycling expertise. Coupled with our capabilities in metal-making and magnet manufacturing, this can create a resilient, circular, end-to-end ecosystem for these critical commodities.”

 

“Such investment is a key milestone in the aim shared by USA Rare Earth and the French government to establish a midstream and downstream rare earth and eventually magnet value chain in the south of France, based on LCM and Carester, that will be unparalleled in the world,” said Roland Lescure, French Minister of the Economy and Finance. 

 

“This partnership will build upon France’s recognized history of expertise and leadership in rare earth research and chemistry, and will strengthen France’s position as a leading source of midstream capabilities in the rare earth industry. We are pleased to provide full state support to quickly bring these important projects to fruition.”

 

“This partnership will provide Carester with capital needed for accelerating our development and will contribute to securing the continent’s access to heavy rare earth materials from USA Rare Earth’s deposit. 

 

"We are proud to partner with USA Rare Earth and see their willingness to expand the rare earth processing platform of Lacq that Carester started into metal-making and magnet production capabilities,” said Frédéric Carencotte, Chief Executive Officer of Carester.