USA Rare Earth (USAR) has entered into a definitive agreement for a strategic minority investment in Carester SAS, a French leader in rare earth processing and separation. The transaction, conducted alongside investment firm InfraVia, will result in USAR acquiring an approximate 13.6% stake in Carester, strengthening its European rare earth supply chain and midstream processing capabilities.

Key Details

  • Investment Structure: USAR's investment is part of a larger €45 million capital raise by Carester. USAR's total contribution is structured through a combination of cash subscriptions (€10.8M), an in-kind contribution of USAR common stock (€11.7M), and secondary share purchases from existing shareholders (€17.5M).
  • Ownership Stake: Upon completion, USAR will hold 177,778 preferred shares, representing approximately 13.6% of Carester's share capital. The deal also facilitates the full exit of existing shareholder Solvay (via Rhodia Opérations).
  • Strategic Rationale & Timeline: The partnership provides USAR with access to a portion of Carester's rare earth oxide output from its facility in Lacq, France, which is expected to commence operations in Q4 2026. The investment is expected to close in the third quarter of 2026, subject to customary conditions.