USA Rare Earth has signed definitive agreements to purchase a strategic minority stake of approximately 13.6% in Carester, a French company specialising in rare earth processing and separation.
InfraVia, through its Critical Metals Fund, is acquiring a similar stake in Carester alongside USA Rare Earth.
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The funding is set to be completed in the third quarter of 2026, pending satisfaction of customary closing conditions.
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.
In addition, 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.
Proceeds from the transaction will be used to fund the growth of Carester’s rare earth processing and separation operations, research and development, and working capital.
The joint investment will result in the exit of Carester’s minority shareholders, as a portion of the funding will be used to acquire their interests.
Carester was established in 2019 and is developing the Caremag magnet recycling and heavy rare earth separation facility in Lacq, France.
The plant, scheduled to commence operations in late 2026, is expected to reach a production capacity of 800 tonnes per annum (tpa) of neodymium-praseodymium oxide, 500tpa of dysprosium oxide and 100tpa of terbium oxide at full ramp-up.
The facility’s output of dysprosium and terbium oxides is expected to account for around 15% of current global production of these materials.
USA Rare Earth CEO Barbara Humpton 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.
“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.”
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 $1.2bn to establish a new magnet manufacturing and refined metals facility in Cherokee County, South Carolina.
