Key Highlights
- USA Rare Earth entered into a term sheet agreement for approximately 12.5% ownership in Carester, a French rare earth processing company, valued at roughly €40 million.
- The agreement provides USAR with rights to Carester’s oxide production, proprietary technology access, and a 15-year supply and offtake contract.
- Carester will receive heavy rare earth concentrate from USAR’s Round Top project located in Texas.
- The collaboration advances a comprehensive rare earth processing center in Lacq, France, featuring a 3,750 metric tons per annum metal and alloy facility.
- USAR shares declined approximately 2.8% Thursday; William Blair maintained its Outperform recommendation post-announcement.
On April 9, 2026, USA Rare Earth (USAR) unveiled a strategic equity position in Carester SAS, a French rare earth processing company, marking another milestone in its mission to establish rare earth supply chains independent of Chinese dominance.
USA Rare Earth, Inc. Nasdaq: $USAR
USA Rare Earth announces Carester investment and strategic partnership in France.
The transaction secures approximately 12.5% equity in Carester SAS, along with offtake rights, engineering IP access, and long-term feedstock supply from the…
— John Stocks (@john_stocks1) April 9, 2026
The agreement outlines USAR’s acquisition of roughly 12.5% equity in Carester SAS, with investment firm InfraVia simultaneously acquiring an equivalent stake. Transaction completion is projected within 30 days, subject to comprehensive due diligence and final documentation.
The transaction, valued at approximately €40 million, grants USAR offtake rights for oxide production, licensing of Carester’s technical expertise and proprietary processes, and integration with Carester’s Lacq, France processing facility — presently under development with anticipated commissioning in late 2026.
As part of the arrangement, USAR commits to delivering heavy rare earth concentrate sourced from its Round Top resource in West Texas to Carester’s operations.
The Lacq facility is being developed as a comprehensive European rare earth hub. The complex will encompass separation processing, metal and alloy manufacturing, and permanent magnet production. USAR’s European subsidiary, LCM Europe, is developing a 3,750 metric ton annual capacity metal and alloy production facility at the same industrial site.
Strategic Significance of the Partnership
China maintains control over approximately 85% of worldwide rare earth processing infrastructure. This market concentration has emerged as a geopolitical leverage point in international trade relations, with Chinese authorities periodically utilizing it to influence Western industrial interests.
Rare earth elements — critical components in applications spanning electric vehicles to advanced military systems — present significant sourcing and processing challenges outside Chinese territories. USAR represents one of several Western enterprises working to diversify this supply chain.
The Carester transaction reinforces USAR’s standing as a midstream provider in European markets. William Blair, which confirmed its Outperform stance Thursday, noted the investment positions USAR as a significant participant in non-Chinese global processing infrastructure and may facilitate additional European governmental backing.
Wall Street analysts collectively hold a Strong Buy consensus on the equity, with price objectives spanning $25 to $45. Roth/MKM recently adjusted its target to $25 from $35, while Canaccord revised downward to $29 from $33, both attributing changes to valuation recalibration rather than operational concerns.
Latest Corporate Developments
USAR has maintained an active development schedule. Earlier in 2026, the company inaugurated its commercial-scale permanent magnet manufacturing line in Stillwater, Oklahoma, with initial customer deliveries of sintered neodymium-iron-boron magnets scheduled for Q2 2026.
The enterprise also established a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and in January disclosed a nonbinding preliminary agreement with the Commerce Department for approximately $1.6 billion in potential financing.
Notwithstanding Thursday’s decline, USAR has appreciated 128% over the trailing twelve months. The stock traded near $16.69 during early Thursday sessions, down roughly 2.8%, consistent with broader market softness.
The latest individual analyst assessment assigned a Hold rating with a $14.50 price objective, though the aggregate analyst consensus remains considerably more optimistic.
