USA Rare Earth (USAR) Invests €40M in French Processor Carester for 12.5% Ownership

Key Highlights

• USA Rare Earth has entered a term sheet agreement to purchase approximately 12.5% of Carester SAS, a French rare earth processing company, for roughly €40 million.
• The transaction provides USAR with rights to Carester’s oxide production, proprietary technology, and a 15-year supply and offtake arrangement.
• Carester will receive heavy rare earth concentrate from USAR’s Round Top project in Texas as part of the exchange.
• The collaboration bolsters a rare earth processing center in Lacq, France, featuring a 3,750 metric ton per annum metal and alloy facility.
• USAR shares declined approximately 2.8% on Thursday; William Blair maintained its Outperform recommendation after the news.

On April 9, 2026, USA Rare Earth (USAR) revealed a strategic equity position in Carester, a French rare earth processing specialist, marking another step in the company’s mission to establish a rare earth value chain independent of Chinese control.

The Texas-based firm executed a term sheet to purchase roughly 12.5% of Carester SAS, with investment partner InfraVia acquiring a matching stake. Transaction completion is projected within 30 days, subject to due diligence completion and final documentation.

USA Rare Earth Inc, USAR

The roughly €40 million investment secures USAR’s rights to oxide production volumes, access to Carester’s technical expertise and proprietary processes, and integration with Carester’s Lacq, France operations — presently under development and scheduled to begin production in late 2026.

As part of the arrangement, USAR commits to delivering heavy rare earth concentrate from its Round Top project in West Texas to Carester’s processing facilities.

The Lacq facility is being developed as a comprehensive rare earth hub for Europe. The site will house processing capabilities, metal and alloy production, and magnet assembly operations. USAR’s LCM Europe division is constructing a 3,750 metric ton annual capacity metal and alloy production line at the same industrial park.

Strategic Significance of the Transaction

Chinese operations dominate approximately 85% of worldwide rare earth processing infrastructure. This dominance has evolved into a geopolitical tool, with Chinese authorities leveraging it during trade negotiations against Western industrial interests.

Rare earth elements — critical components in applications spanning electric motors to military hardware — present significant sourcing and processing challenges outside Chinese borders. USAR represents one of multiple Western enterprises working to disrupt this dependency.

The Carester transaction enhances USAR’s capabilities as a midstream processor in the European market. William Blair, reaffirming its Outperform stance on Thursday, noted the investment positions USAR as a significant contributor to non-Chinese global processing infrastructure and may attract additional European government backing.

Wall Street analysts collectively assign a Strong Buy rating to the stock, with target prices spanning $25 to $45. Roth/MKM recently adjusted its target downward to $25 from $35, while Canaccord revised to $29 from $33, both attributing changes to valuation recalibration rather than operational concerns.

Latest Corporate Developments

USAR has maintained an active development calendar. Earlier in 2026, the company inaugurated its commercial-scale magnet manufacturing facility in Stillwater, Oklahoma, with customer shipments of sintered neodymium-iron-boron magnets anticipated to commence in Q2 2026.

The company additionally finalized a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and during January revealed a preliminary letter of intent with the Department of Commerce for approximately $1.6 billion in potential financing.

Notwithstanding Thursday’s decline, USAR has appreciated 128% over the trailing twelve months. Shares traded near $16.69 during early Thursday sessions, reflecting a roughly 2.8% decrease, generally consistent with broader market weakness.

The latest individual analyst assessment assigns a Hold rating with a $14.50 price objective, though the aggregate analyst view remains considerably more optimistic.

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