USA Rare Earth Inc. (NASDAQ:USAR) shares gained about 2% in premarket trading on Tuesday after the company unveiled plans to build a rare earth metals and alloys plant in France, backed by French government support.
The Oklahoma-based group said the project will involve a 3,750-metric-ton-per-year production facility in Lacq, to be developed via its subsidiary Less Common Metals Europe SAS. The site will sit alongside Carester SAS’ planned 1,600 mtpa rare earth oxide processing plant, which is expected to start operating in late 2026.
USA Rare Earth said French authorities have approved substantial financial support for the project, including direct credits under the C3IV program covering up to 45% of eligible equipment costs and as much as €130 million for real estate. The government is also considering support for workforce hiring and training at the site.
“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,” said Barbara Humpton, Chief Executive Officer of USAR.
According to the company, the facility would become Europe’s first dedicated rare earth metal-making platform, strengthening regional supply chains for materials critical to advanced technologies and the energy transition, while supporting industrial sovereignty and supply security.