en.Wedoany.com Reported - USA Rare Earth, Inc. (USAR) has signed a term sheet with the European private equity investment platform InfraVia Capital Partners, under which both parties will acquire approximately 12.5% of the equity in the French rare earth technology company Carester. InfraVia is making this investment through its Critical Metals Fund, with the French government serving as the anchor investor for the fund. This investment aims to establish a transatlantic industrial cooperation system covering mining, processing, recycling, and magnet production.
According to the proposed cooperation terms, USAR and its UK subsidiary Less Common Metals (LCM) Europe will secure the right to purchase oxide products from Carester's Caremag plant, while gaining access to Carester's engineering expertise and intellectual property in the fields of rare earth separation, processing, and recycling technologies. In exchange, Carester will obtain a long-term supply of heavy rare earth raw materials produced from USAR's Round Top deposit located in Texas, USA. The deposit is expected to commence commercial operations by the end of 2028. Round Top is considered one of the largest heavy rare earth deposits in the United States, containing 16 of the 17 rare earth elements, with measured and indicated resources of 364,000 tons and inferred resources of 735,000 tons.
Founded in 2019 and headquartered in France, Carester is a rare earth technology company focused on rare earth processing and separation technologies, with particular emphasis on process efficiency and advanced environmentally friendly methods. Currently, Carester is constructing its Caremag recycling and heavy rare earth separation plant in Lacq, France, targeting commissioning by the end of 2026. USAR, through LCM Europe, is developing a metal and alloy production facility at the same site with an annual capacity of 3,750 metric tons, creating a synergistic mid-to-downstream capability layout with the Caremag plant. The French government may provide additional financial support for the LCM Europe facility, including direct credit covering up to 45% of eligible equipment and real estate costs (capped at €130 million) under the C3IV program, as well as a state guarantee covering 50% of commercial debt financing provided through Bpifrance Assurance Export. Barbara Humpton, CEO of USAR, stated that this transaction advances and enhances USAR's integrated rare earth value chain, aiming to establish Europe's first rare earth oxide and metal manufacturing platform. The agreement remains subject to customary closing conditions, including due diligence and final documentation.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
