USA Rare Earth Inc. (NASDAQ:USAR) has outlined plans to invest around €175 million in France by 2030 as part of its strategy to expand rare earth metal, alloy and magnet production capabilities in Europe.
The proposed investment forms part of the company’s broader effort to develop an integrated rare earth supply chain spanning mining, processing and advanced manufacturing.
Expansion Builds on Existing French Operations
The planned spending programme will build on USA Rare Earth’s current activities in France, including the development of a rare earth metals and alloys facility operated by Less Common Metals in Lacq.
The company has also established a presence through its strategic investment in Carester SAS, alongside infrastructure-focused investment firm InfraVia Capital Partners.
Management views these projects as key components of a growing European rare earth processing and manufacturing network.
Project Expected to Create Hundreds of Jobs
According to the company, the expansion could generate more than 300 new jobs in the region over the coming years.
The investment programme is expected to be carried out with support from a range of French government initiatives designed to encourage industrial development and strengthen strategic supply chains.
Among the measures cited by the company is participation in France’s C3IV programme, which aims to support industrial and innovation-focused investments.
Additional Government Support Under Consideration
USA Rare Earth indicated that the project could also benefit from further backing from French authorities.
Potential support mechanisms under discussion include government-backed debt guarantees as well as a possible direct equity investment in the company’s European subsidiary.
Such measures would further reinforce the company’s long-term commitment to expanding its manufacturing footprint in France.
CEO Highlights Strategic Importance of France
Chief Executive Officer Barbara Humpton confirmed the company’s plans during the Choose France summit held in Paris, emphasizing the importance of establishing magnet manufacturing operations in the country.
“At USA Rare Earth, we are committed to creating resilient, regional operations as we build out the mine-to-magnet value chain,” Humpton said. “France is an attractive location, with a strong combination of industrial infrastructure, a re-emerging rare earth processing cluster, skilled workforce, and the policy support to rebuild critical minerals capability.”
Humpton noted that France offers a combination of industrial expertise, infrastructure and government support that aligns with the company’s long-term objectives in critical minerals and advanced manufacturing.
Investment Supports Broader Strategic Goals
The company stated that the planned French expansion is consistent with its wider strategy and complements anticipated agreements with the U.S. Department of Commerce.
USA Rare Earth is working to establish an integrated rare earth ecosystem covering extraction, processing and magnet production, with operations and development projects spanning multiple international markets.
Building a Global Rare Earth Platform
USA Rare Earth currently operates across several segments of the rare earth value chain and is pursuing projects in the United States, United Kingdom, France and Brazil.
By expanding its manufacturing presence in Europe, the company aims to strengthen regional supply chains for critical minerals and reduce dependence on concentrated sources of rare earth processing and magnet production.
The proposed investment represents another step toward creating a diversified international platform serving industries that rely on rare earth materials, including clean energy, advanced manufacturing and defense applications.