Key Highlights
- USA Rare Earth executed a term sheet for approximately 12.5% ownership in Carester, a French rare earth processing company, valued at roughly €40 million.
- USAR gains rights to Carester’s oxide production, proprietary technology, and a 15-year supply and offtake arrangement through this agreement.
- Carester receives heavy rare earth feedstock from USAR’s Round Top mining operation located in Texas as part of the exchange.
- The collaboration advances a rare earth processing center in Lacq, France, featuring a 3,750 mtpa metal and alloy facility.
- USAR shares declined approximately 2.8% on Thursday; William Blair maintained its Outperform recommendation after the news.
On April 9, 2026, USA Rare Earth (USAR) unveiled a strategic stake acquisition in French rare earth processor Carester, marking another milestone in the company’s efforts to establish a rare earth supply chain independent of Chinese control.
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
USAR executed a term sheet for roughly 12.5% of Carester SAS, alongside investment partner InfraVia, which will acquire a matching percentage. The transaction is projected to finalize within a month following due diligence completion and finalization of binding documentation.
The stake purchase is valued at approximately €40 million. The arrangement provides USAR with oxide offtake privileges, utilization of Carester’s technical expertise and proprietary processes, and integration with Carester’s Lacq, France operation — currently in construction phase with anticipated operational commencement in late 2026.
As consideration, USAR commits to providing Carester with heavy rare earth feedstock sourced from its Round Top project in West Texas.
The Lacq facility is being developed as a comprehensive European rare earth hub. The site will combine processing operations, metal and alloy manufacturing, and magnet production capabilities. USAR’s LCM Europe division plans a 3,750 metric ton annual capacity metal and alloy production facility at the identical location.
Strategic Significance of the Partnership
China maintains dominance over approximately 85% of worldwide rare earth processing infrastructure. This market concentration has evolved into a geopolitical tool in international commerce conflicts, with Chinese authorities deploying it as bargaining power against Western industrial sectors.
Rare earth elements — essential components in electric vehicles, military aircraft, and advanced electronics — present significant challenges for sourcing and refining beyond Chinese borders. USAR represents one among several Western enterprises working to alter this dynamic.
The Carester transaction bolsters USAR’s standing as a midstream provider in the European market. William Blair, which reaffirmed its Outperform assessment on Thursday, indicated 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 stance on the company, with valuation targets spanning $25 to $45. Roth/MKM recently adjusted its objective to $25 from $35, while Canaccord revised downward to $29 from $33, both attributing changes to valuation recalibration rather than operational weaknesses.
Latest Corporate Developments
USAR has maintained an active schedule. During early 2026, the company activated its commercial magnet manufacturing line in Stillwater, Oklahoma, with client orders for sintered neodymium-iron-boron magnets scheduled for delivery beginning in Q2 2026.
The organization also established a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and during January revealed a nonbinding letter of intent with the Commerce Department for roughly $1.6 billion in financial support.
Beyond Thursday’s decrease, USAR has gained 128% during the previous 12 months. Shares traded near $16.69 in early Thursday sessions, declining about 2.8%, aligning with broader market softness.
The latest individual analyst assessment carries a Hold recommendation with a $14.50 valuation target, although the collective analyst perspective trends more favorably.
