Key Highlights
- USA Rare Earth has entered into a term sheet to purchase approximately 12.5% of Carester SAS, a French rare earth processing company, for roughly €40 million.
- The agreement provides USAR with rights to Carester’s oxide production, proprietary technology, and establishes a 15-year supply and offtake arrangement.
- Carester will receive heavy rare earth feedstock sourced from USAR’s Round Top facility located in Texas.
- The collaboration bolsters a comprehensive rare earth processing center in Lacq, France, featuring a 3,750 metric ton per annum metal and alloy facility.
- Shares of USAR declined approximately 2.8% on Thursday; William Blair maintained its Outperform recommendation post-announcement.
On April 9, 2026, USA Rare Earth (USAR) revealed a strategic equity position in Carester, a French-based rare earth processor, marking another significant step in its mission to establish a rare earth value chain 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 company has entered into a preliminary agreement to purchase roughly 12.5% of Carester SAS, with investment firm InfraVia acquiring a matching stake. The transaction is projected to finalize within 30 days, subject to completion of due diligence and execution of binding documentation.
The equity investment, valued at approximately €40 million, grants USAR exclusive offtake privileges for oxide products, licensing rights to Carester’s proprietary engineering capabilities and intellectual assets, and integration with Carester’s Lacq, France processing facility — currently under development with commercial operations slated for late 2026.
As part of the arrangement, USAR commits to providing Carester with heavy rare earth concentrate extracted from its Round Top project located in West Texas.
The Lacq facility is being developed as one of the most comprehensive rare earth industrial complexes in Europe. The site will combine separation processing, metal and alloy manufacturing, and permanent magnet production capabilities. USAR’s LCM Europe division has committed to constructing a 3,750 metric ton annual capacity metal and alloy production plant at the same industrial park.
Strategic Significance of the Partnership
China maintains control over approximately 85% of worldwide rare earth refining and processing infrastructure. This market concentration has emerged as a critical vulnerability in international trade dynamics, with Chinese authorities periodically wielding it as a geopolitical tool against Western industrial sectors.
Rare earth elements — essential components in applications ranging from electric vehicle motors to advanced military systems — remain challenging to obtain and refine outside Chinese supply networks. USAR represents one among several Western enterprises working to disrupt this dependency.
The Carester transaction reinforces USAR’s strategic positioning as a critical midstream processor within European markets. William Blair, which confirmed its Outperform stance on Thursday, indicated the equity stake advances USAR’s trajectory toward becoming a substantial contributor to non-Chinese global processing infrastructure and may facilitate additional European governmental backing.
The broader analyst community holds a Strong Buy consensus on USAR, with price objectives spanning from $25 to $45. Roth/MKM recently adjusted its target downward to $25 from $35, while Canaccord revised to $29 from $33, with both firms attributing the changes to valuation recalibration rather than operational concerns.
Recent Operational Developments
USAR has maintained an active development schedule. Early in 2026, the company initiated commercial operations at its permanent magnet manufacturing facility in Stillwater, Oklahoma, with initial customer shipments of sintered neodymium-iron-boron magnets scheduled for Q2 2026.
The firm additionally formalized a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and in January disclosed a non-binding letter of intent with the Department of Commerce for approximately $1.6 billion in potential financing support.
Notwithstanding Thursday’s decline, USAR has delivered 128% returns over the trailing twelve-month period. Shares traded near $16.69 during early Thursday sessions, representing a decline of roughly 2.8%, generally consistent with broader market weakness.
The most current individual analyst rating assigns a Hold recommendation with a $14.50 price objective, though the aggregate analyst consensus reflects a more optimistic outlook.
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