USA Rare Earth, Inc. (NASDAQ: USAR) has announced a strategic expansion into the European market via its subsidiary, Less Common Metals (LCM). The company intends to develop a state-of-the-art metal and alloy manufacturing plant located in Lacq, France, designed to produce up to 3,750 metric tons annually. This move represents a significant step to broaden USAR's operational capacity well beyond its U.S. base, entering one of Europe's key industrial regions.
The development at Lacq is set to integrate closely with the existing industrial framework, specifically by co-locating with the Caremag oxide processing facility operated by Carester SAS, which is projected to start operations in late 2026. With the combination of these two facilities, USAR aims to build a comprehensive rare earth production and processing ecosystem in Europe, enhancing its ability to serve transatlantic markets and strengthen supply chains critical to numerous industries.
This strategic initiative in France has garnered robust backing from French governmental programs, most notably the C3IV initiative. Under this program, USAR will benefit from substantial fiscal and operational incentives, which include direct tax credits covering up to 45% of qualifying equipment expenditures. Furthermore, the project is eligible for real estate financing assistance estimated at as much as $152 million, a significant capital support that underscores France's interest in securing a resilient and localized rare earth supply chain.
Beyond financial incentives, workforce development is a core component of the government's support. USAR will receive aid in recruitment efforts alongside specialized training programs intended to cultivate and sustain a highly skilled local workforce dedicated to operating the new facility. This focus on human capital development aligns with the broader strategic goal of building a secure domestic talent pool for high-tech metal and alloy production within the region.
Barbara Humpton, CEO of USA Rare Earth, articulated the importance of the new plant in her statement: "The development of an integrated rare earth processing and metal-making platform in France enhances USAR’s integrated rare earth value chain, to the benefit of the United States and our allies. We are proud to establish Europe’s first metal-making platform, which will accelerate the realization of a secure, sustainable transatlantic rare earth value chain." Humpton's remarks highlight the dual focus on supply chain security and alliance-building that underpins this expansion.
The company’s stock performance has reflected strong investor enthusiasm following the announcement and ongoing regulatory support for ventures within the critical minerals space. Shares of USA Rare Earth have surged over 55% in January alone, demonstrating market confidence in the company’s growth trajectory and strategic positioning. On the day of the announcement, USAR shares closed up 6.95%, reaching a price of approximately $18.92, according to Benzinga Pro data.
This expansion strategy is an extension of USA Rare Earth's broader plan to develop vertically integrated rare earth value chains that benefit both the American and European industrial landscapes. By building capacity in France, USAR not only diversifies geographic risk but also strengthens cooperation with allied nations, which is increasingly vital in the context of global resource competition and the evolving geopolitical landscape surrounding critical materials.
In summary, USA Rare Earth's establishment of a metal and alloy production plant in Lacq represents a critical milestone in the company's evolution. The facility’s integration with Caremag’s oxide processing capabilities provides a complete production pipeline, much sought after in an industry characterized by complex, strategic supply needs. Substantial governmental backing enhances the viability of the project financially and operationally, while the anticipated boost to local workforce capabilities signals a long-term commitment to regional industrial development. For investors and stakeholders, these developments underscore USAR's growing strategic relevance and operational footprint within the rare earth market.