An American group and a French fund plan to invest in a Lyon-based startup developing rare earths

The American Rare Earth Company plans to jointly invest with the French Infrastructure Fund in Carester, a development company, to build a rare earth metal and alloy factory near Pau, France, in response to China's dominant position in this sector.

The French Infrastructure Fund stated today in a press release that it intends to co-invest with the U.S. critical minerals company in a 12.5% stake in Carester, a startup headquartered in Lyon, as part of a broader initiative led by the French government.

The goal of this initiative is to establish Europe’s most comprehensive rare earth industrial ecosystem in the Lac Basin region of the southern Pyrenees-Atlantique department.

Completion of this transaction still depends on several conditions, including completion of due diligence and negotiation and signing of final documentation. Under the agreement, both parties will acquire approximately 12.5% stakes in Carester. The American Rare Earth Company has already confirmed in early January that it will establish a rare earth metal and alloy production plant in the Lac Basin area of France.

The regional authority described the move as "significant," noting that the project involves an investment exceeding €110 million and will create around 80 direct jobs. Carester anticipates that the project will ultimately recycle 2,000 tons of magnets and refine 5,000 tons of mineral concentrates annually, with operations scheduled to begin by the end of 2026.

Since the launch of the Carester industrial project, the French government has invested €106 million through various support mechanisms such as the France Relance plan, France 2030, and green industry tax credits. The Japanese government and private enterprises have also committed investments toward this facility.

This project is hailed as "Europe’s first large-scale rare earth recycling facility and the largest Western producer of refined heavy rare earths," addressing China’s dominance in this field. The government welcomes this financing as a strategic step forward.

Source: rfi

Original article: toutiao.com/article/1862001370458119/

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