Key insights
- USA Rare Earth plans a significant €175 million investment in France through 2030 to expand its rare earth metal, alloy, and magnet manufacturing. This move, supported by French government incentives and potential US Department of Commerce agreements, aims to bolster the European rare earth ecosystem and create over 300 jobs. While primarily a company-specific announcement, it signals a broader trend of onshoring and diversification in critical mineral supply chains, which could indirectly benefit US companies involved in related sectors or facing supply chain vulnerabilities.
PARIS - USA Rare Earth, Inc. (NASDAQ:USAR) announced plans to invest approximately €175 million in France through 2030 to expand its metal, alloy and magnet manufacturing operations, according to a press release statement.
The investment would build upon the company’s existing French initiatives, including a rare earth metal and alloy production facility at Lacq operated by its subsidiary Less Common Metals and a strategic investment in Carester SAS alongside InfraVia Capital Partners. The expansion could create over 300 jobs in the region.
The company said the investment would be made in conjunction with French government incentives, including the C3IV program, with potential additional support through debt guarantees and a possible direct equity investment into the company’s European subsidiary. The plans align with agreements the company intends to make with the U.S. Department of Commerce.
Barbara Humpton, Chief Executive Officer of USA Rare Earth, spoke at the Choose France summit in Paris, confirming the strategic initiatives were underway with magnet manufacturing in France as a key objective.
USA Rare Earth operates across the rare earth value chain through its ownership of Less Common Metals, magnet manufacturing development in Stillwater, Oklahoma, the Pela Ema mine in Brazil subject to closing its proposed acquisition of Serra Verde Group, and the Round Top deposit in Texas.
The company stated the investment would support the growth of France’s rare earth separation, metal, alloy and magnet manufacturing ecosystem and extend its planned operations at the Lacq industrial cluster.
In other recent news, USA Rare Earth Inc. reported its first-quarter earnings for 2026, surpassing analyst expectations with an earnings per share of -$0.12, compared to the anticipated -$0.14. This development highlights the company’s financial performance despite market reactions. Additionally, USA Rare Earth has been selected to receive up to $19.3 million in federal funding from the U.S. Department of Energy. This funding is intended to support the development of a pilot-scale rare earth element separations project, which is crucial for enhancing domestic processing capacity for materials used in energy, defense, and advanced manufacturing supply chains.
Furthermore, Gregory Bowman, the company’s Chief Global Policy Officer, has been appointed to the U.S. Department of War’s Science, Technology and Innovation Board. The board was formed in 2026 and focuses on addressing national security challenges for senior Department officials. These recent developments underscore USA Rare Earth’s strategic initiatives in advancing its operational and policy influence.
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