USA Rare Earth expands into France with government support, building Europe’s first integrated rare earth metal-making platform and strengthening transatlantic supply chains.
USA Rare Earth, Inc. is reinforcing its position across the global rare earth supply chain through a strategic expansion in Europe, backed by strong institutional support from the French government. Through its European subsidiary, Less Common Metals Europe SAS, the company has unveiled plans to establish a new state-of-the-art metal and alloy manufacturing facility in Lacq, France. Designed with an annual production capacity of approximately 3,750 metric tons, the facility will significantly enhance Europe’s ability to process and commercialize rare earth materials domestically.
The planned metal and alloy production plant will be co-located with the 1,600 metric ton per annum Caremag rare earth oxide processing facility being developed by Carester SAS in Lacq. The Caremag facility is expected to be commissioned toward the end of 2026, and together, the two projects will form a fully integrated platform covering rare earth oxide processing, metal production, and alloy manufacturing. This co-location strategy is intended to improve efficiency, reduce logistics complexity, and strengthen supply chain security within Europe.
A key driver behind the project is the extensive backing offered by the French government, which has committed to supporting both the capital expenditure and operational needs of LCM Europe’s new facility. Under France’s C3IV industrial support framework, LCM Europe has been approved for direct credits covering up to 45% of eligible equipment costs. In addition, government support of up to €130 million has been approved for real estate-related investments, substantially reducing the financial burden of establishing the facility.
Beyond infrastructure funding, the French authorities have also expressed strong interest in supporting workforce development initiatives. These include hiring incentives and training programs aimed at building a highly skilled local talent base capable of supporting advanced rare earth metal-making operations. Such measures align with France’s broader industrial policy goals of strengthening strategic industries, enhancing technological capabilities, and fostering long-term employment.
Commenting on the development, Barbara Humpton, Chief Executive Officer of USA Rare Earth, emphasized the strategic importance of the project. She noted that the establishment of an integrated rare earth processing and metal-making platform in France directly strengthens USA Rare Earth’s vertically integrated value chain. According to Humpton, the initiative benefits not only the United States but also its allies by helping to secure reliable, sustainable access to critical materials essential for modern technologies.
The Lacq platform is expected to become Europe’s first dedicated rare earth metal-making hub, marking a major milestone in the region’s industrial capabilities. By localizing key stages of the rare earth supply chain, the project reduces reliance on concentrated global supply sources and supports the development of a secure transatlantic rare earth ecosystem.
Overall, this initiative reflects USA Rare Earth’s broader ambition to foster a resilient and environmentally responsible rare earth industry in Europe. The integrated platform supports industrial sovereignty by ensuring access to critical raw materials required for advanced manufacturing, clean energy technologies, defense systems, and the wider energy transition. With strong government backing and a clear long-term vision, the project positions France as a strategic cornerstone in the future of global rare earth supply chains.
