Key Highlights
- USA Rare Earth entered a term sheet agreement to purchase approximately 12.5% of Carester, a French rare earth processing company, for roughly €40 million.
- USAR gains rights to Carester’s oxide production, proprietary technology, and a 15-year supply and offtake arrangement.
- Carester receives access to heavy rare earth feedstock sourced from USAR’s Round Top mining operation in Texas.
- The collaboration advances a rare earth processing center in Lacq, France, featuring a 3,750 metric ton annual metal and alloy facility.
- USAR shares declined approximately 2.8% on Thursday; William Blair maintained its Outperform rating after the news.
On April 9, 2026, USA Rare Earth (USAR) revealed a strategic equity position in Carester, a French rare earth processing company, marking another significant step in establishing a rare earth supply network 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
Under the signed term sheet, USAR will acquire roughly 12.5% of Carester SAS, with investment firm InfraVia securing an identical stake. The transaction is projected to finalize within 30 days, subject to due diligence completion and execution of final agreements.
The equity investment is valued at approximately €40 million. Through this deal, USAR obtains offtake rights for oxide production, gains access to Carester’s technical expertise and proprietary intellectual property, and becomes integrated with Carester’s Lacq, France processing facility — currently in development with operations scheduled to commence in late 2026.
As part of the arrangement, USAR commits to providing Carester with heavy rare earth feedstock sourced directly from its Round Top mineral deposit located in West Texas.
The Lacq facility is being developed as a comprehensive rare earth industrial hub for Europe. The site will combine processing capabilities, metal and alloy manufacturing, and magnet production under one ecosystem. USAR’s European subsidiary, LCM Europe, is establishing a 3,750 metric ton annual capacity metal and alloy production plant at the same location.
Strategic Significance of the Investment
China maintains control over approximately 85% of worldwide rare earth processing infrastructure. This dominant position has emerged as a critical vulnerability in international trade relations, with Chinese authorities leveraging this control against Western industrial interests.
Rare earth elements — essential components in products ranging from electric vehicle motors to military aerospace systems — present significant challenges for sourcing and processing outside Chinese facilities. USAR represents one of multiple Western enterprises working to establish alternative supply chains.
The Carester transaction reinforces USAR’s standing as a midstream supplier within European markets. William Blair, which confirmed its Outperform rating on Thursday, indicated the investment positions USAR to become a substantial participant in non-Chinese global processing infrastructure and may facilitate additional European governmental backing.
The analyst community overall maintains a Strong Buy consensus rating for the stock, with price projections spanning $25 to $45. Roth/MKM recently reduced its target to $25 from $35, while Canaccord adjusted downward to $29 from $33, both citing valuation recalibrations rather than operational or fundamental issues.
Latest Corporate Developments
USAR has been executing on multiple fronts. Earlier in 2026, the company activated its commercial magnet manufacturing line in Stillwater, Oklahoma, with customer shipments of sintered neodymium-iron-boron magnets anticipated to begin during Q2 2026.
The company also established a reciprocal sales and distribution partnership with Arnold Magnetic Technologies, and revealed a nonbinding letter of intent with the Commerce Department in January for approximately $1.6 billion in potential financing.
Notwithstanding Thursday’s decline, USAR has gained 128% over the trailing 12-month period. Shares were trading near $16.69 during early Thursday sessions, down roughly 2.8%, consistent with broader market weakness.
The latest individual analyst rating assigned to the stock is a Hold with a $14.50 price objective, though the overall analyst consensus trends more favorably.
