USA Rare Earth Secures 13.6% Stake in Carester for EUR 40M, Locking in European Rare Earth Oxide Supply
USAR sits 43% above its 52-week low of $10.91.
Summary
USA Rare Earth has signed definitive agreements to take a 13.6% stake in Carester SAS for EUR 40 million, locking in access to critical rare earth oxide production in Europe.
Key Events · M&A and Partnerships · USAR
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Strategic Investment in Carester
For a total outlay of EUR 40.0 million—comprising EUR 22.5M in cash, EUR 11.7M in USAR shares, a EUR 5.0M secondary purchase, and a EUR 12.5M Rhodia exit—USA Rare Earth will own a 13.6% stake in Carester SAS, a French leader in rare earth processing.
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Secures Oxide Offtake Rights
The agreement entitles USAR and its subsidiary LCM Europe to buy a portion of the rare earth oxide output from Carester's Caremag facility, which is scheduled to begin production in Q4 2026 with annual capacity of 800 tonnes of NdPr oxide, 500 tonnes of Dy oxide, and 100 tonnes of Tb oxide.
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Strengthens European Supply Chain
This investment anchors a broader partnership aimed at building an integrated rare earth industrial platform in Lacq, France, complementing USAR's planned 3,750 mtpa metal and alloy facility at the same site.
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Transaction Structure and Dilution
The EUR 11.7M in-kind contribution will be settled with USAR shares, the number of which will be set by the stock price nine days before closing. At the current price of roughly $15.63, that translates to about 0.8 million shares, or less than 0.5% dilution.
Analysis · USAR · Energy & Transportation
A EUR 40 million mix of cash and stock gives USA Rare Earth a 13.6% stake in Carester, a French rare earth processor, and with it guaranteed access to heavy rare earth oxides from the Caremag facility when it comes online in Q4 2026. The move deepens USAR's European midstream footprint and anchors a Western-aligned supply chain for magnet manufacturing. Beyond the equity, the broader partnership delivers offtake rights and engineering access that directly reinforce the company's integrated rare earth strategy.
At the time of this filing, USAR was trading at $15.63 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $10.91 to $43.98. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.