[SMM Flash: US Rare Earth Company to Build Rare Earth Plant in France] US Rare Earth (USAR), headquartered in Oklahoma, announced today that it will construct a rare earth metal and alloy production facility with an annual capacity of 3,750 mt in Lacq, southwestern France, through its subsidiary Less Common Metals (LCM) Europe. The plant will operate on the same site as the planned 1,600 mt/year Caremag rare earth oxide plant by Carester, which is expected to commence operations by the end of 2026.
The French government will provide tax credit support for the project, with equipment eligible for green industry investment qualifying for credits of up to 45%, and real estate investments eligible for credits of up to €130 million ($152 million). This C31V tax incentive policy, which took effect in 2024, aims to promote investment in key energy transition sectors—including batteries, solar, wind, and heat pumps—as well as in the upstream raw material industry chain.
In September 2025, USAR acquired LCM for $125 million to support its plan to build a 5,000 mt/year magnet plant in the US. The Caremag plant will utilize recycled permanent magnets and heavy rare earth concentrates to produce rare earth oxides, processing 2,000 mt/year of magnets and 5,000 mt/year of concentrates, with expected annual output of 800 mt of NdFeB and 590 mt of dysprosium and terbium. This move will further strengthen USAR's position in the global rare earth supply chain.
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