Key Highlights
- USA Rare Earth has executed a term sheet for acquiring approximately 12.5% ownership in Carester, a French rare earth processing company, with an investment valued at roughly €40 million.
- This strategic transaction provides USAR with rights to Carester’s oxide production, proprietary technology access, and establishes a 15-year supply and offtake arrangement.
- Carester will receive heavy rare earth feedstock sourced from USAR’s Round Top mining operation located in Texas.
- This collaboration strengthens a 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% on Thursday; William Blair maintained its Outperform assessment after the news.
On April 9, 2026, USA Rare Earth (USAR) revealed a strategic partnership with French rare earth processor Carester, marking another significant step in establishing a rare earth supply network independent of Chinese control.
The organization has finalized a term sheet to purchase roughly 12.5% of Carester SAS, working alongside investment company InfraVia, which will obtain a matching ownership percentage. The transaction is projected to finalize within 30 days, subject to due diligence completion and final documentation.
The commitment totals approximately €40 million. This arrangement grants USAR oxide offtake privileges, utilization of Carester’s technical expertise and proprietary processes, and integration with Carester’s Lacq, France operation — presently under development and scheduled to commence production in late 2026.
As part of the arrangement, USAR will provide Carester with heavy rare earth concentrate sourced directly from its Round Top resource in West Texas.
The Lacq facility is being developed as one of Europe’s most comprehensive rare earth production complexes. It will combine processing capabilities, metal and alloy manufacturing, and magnet production. USAR’s LCM Europe division has designed a 3,750 metric ton annually metal and alloy production facility at this location.
Strategic Significance of This Partnership
China maintains control over approximately 85% of worldwide rare earth refining capabilities. This market concentration has emerged as a geopolitical flashpoint in international trade tensions, with Chinese authorities leveraging it against Western industrial interests.
Rare earth elements — critical components in products ranging from electric vehicles to military aircraft — are challenging to obtain and refine outside Chinese borders. USAR represents one of multiple Western enterprises working to disrupt this dynamic.
The Carester partnership enhances USAR’s standing as a midstream provider within Europe. William Blair, which confirmed its Outperform designation on Thursday, indicated the transaction positions USAR as a significant contributor to non-Chinese global refining infrastructure and may attract additional European governmental backing.
Market analysts collectively hold a Strong Buy outlook on the equity, with valuation targets spanning $25 to $45. Roth/MKM recently adjusted its objective to $25 from $35, while Canaccord reduced to $29 from $33, both attributing changes to valuation recalibrations rather than operational issues.
Latest Corporate Developments
USAR has demonstrated considerable activity. During early 2026, the company activated its commercial magnet manufacturing facility in Stillwater, Oklahoma, with client deliveries for sintered neodymium-iron-boron magnets anticipated to begin in Q2 2026.
The enterprise also established a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and in January disclosed a nonbinding letter of intent with the Commerce Department for approximately $1.6 billion in financial support.
Notwithstanding Thursday’s decrease, USAR remains elevated 128% across the previous 12 months. The equity traded near $16.69 during early Thursday sessions, declining roughly 2.8%, consistent with broader market softness.
The latest analyst assessment on the stock is a Hold with a $14.50 valuation target, though the wider analyst consensus remains more favorable.
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