Al Root

USA Rare Earth is working to break China's dominance in rare earths. A new investment in France can help.

Thursday, USA Rare Earth announced an investment in Carester, a French specialist in rare-earth processing and separation technologies. Carester is currently building a facility in Lacq, France, which is scheduled to start up in late 2026.

The "broader partnership" will provide USA Rare Earth with access to Carester's oxide output for use in its metal-making facility in France. Carester will also get access to USA Rare Earth's rare earth feedstock from its Round Top mine in Texas.

The transaction is another example of Western companies moving to build a rare-earth value chain outside China, which dominates rare-earth materials with an estimated 85% of global processing capacity.

China has used that position in recent trade conflicts, threatening U.S. manufacturing. Small amounts of rare earth materials are used in a host of high-tech products, from EVs to fighter jets. Rare earth magnets make up a majority of applications.

De-emphasizing China is a long process that stretches from the mine to ore processing to metal and alloy making to magnet production.

"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 USA Rare Earth CEO Barbara Humpton in a news release. "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."

USA Rare Earth is a relatively new player in the space. Its mine isn't in commercial production yet. In January, it announced a nonbinding letter of intent with the Commerce Department to provide about $1.6 billion in financing.

MP Materials is the largest rare-earth company in the Western Hemisphere, with mining, processing, and magnet-making facilities.

USA Rare Earth stock was down 1.9% in early trading on Thursday, while S&P 500 and Dow Jones Industrial Average futures were down 0.4% and 0.5%, respectively.

The deal isn't the reason. Shares soared almost 15% on Wednesday after President Donald Trump announced a two-week cease-fire with Iran, sending most shares higher.

Coming into Wednesday trading, USA Rare Earth stock was down 23% since fighting began, which still left shares up 55% over the past 12 months.

Write to Al Root at allen.root@dowjones.com

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April 09, 2026 08:00 ET (12:00 GMT)

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