US and French Rare Earth Companies Partner in Bid to Catch up with China

Why It Matters

By combining US mining ambitions with French processing know‑how, the alliance strengthens domestic supply chains and reduces reliance on China’s near‑monopoly, a critical move for defense and clean‑energy industries.

Key Takeaways

• USA Rare Earth acquires 12.5% stake in French specialist Carester.
• Carester to build commercial rare earth separation plant in southern France 2026.
• Partnership links Texas heavy‑rare‑earth mine plans with French processing expertise.
• US government pledges $1.3 billion loan to USA Rare Earth for mine.
• IEA estimates $60 billion needed for non‑Chinese rare‑earth supply chain by 2035.

Pulse Analysis

The global rare‑earth market remains heavily skewed toward China, which controls most mining, processing and magnet production. This concentration poses strategic risks for the United States and its allies, especially as electric‑vehicle, wind‑turbine and defense sectors surge. Recent Chinese export curbs have amplified supply‑chain volatility, prompting policymakers to prioritize domestic capabilities and diversify sources of critical minerals.

The USA Rare Earth‑Carester partnership merges complementary strengths: USA Rare Earth brings a prospective Texas mine rich in heavy rare‑earths, while Carester contributes decades of separation expertise rooted in Solvay’s legacy. Carester’s upcoming commercial plant in southern France will demonstrate a scalable solvent‑extraction process, and a parallel US facility will convert oxides into pure metals. With InfraVia Capital matching the investment, the deal injects significant private capital alongside a pending $1.3 billion U.S. loan, underscoring government commitment to building a full‑value‑chain from ore to magnet.

Beyond the immediate projects, the alliance signals a broader shift toward transatlantic collaboration on critical minerals. Analysts estimate a $60 billion investment is required to establish a non‑Chinese supply chain capable of meeting 2035 demand for rare‑earth magnets. Successful scaling could lower costs, spur downstream manufacturing in the U.S. and Europe, and reduce geopolitical exposure. As more firms seek expertise, Carester’s role as a processing hub may accelerate the entry of new miners, ultimately reshaping the competitive landscape and strengthening supply‑chain resilience.