Highlights

• France's $245M rare earth facility in Lacq seeks to challenge China's 90% global refined supply dominance.
• The project aims to produce 600 tonnes of heavy rare earths annually.
• The initiative targets a 15% market share through strategic international partnerships.
• Europe's rare earth independence remains incremental, with significant dependence on Asian feedstock imports.
• There is an ambitious industrial policy despite the dependence on imports.

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Europe has long worried about its dependence on China’s rare earth supply, and now France is trying to rewrite that script. A new facility in Lacq, France—backed by Caremag, a subsidiary of Carester (opens in a new tab)—has made headlines with claims it will soon supply 15% of the world’s heavy rare earths. That’s a bold statement. But how much of it is fact, how much ambition, and how much marketing spin? Rare Earth Exchanges (REEx) recently profiled Carester as one of the lead “ex-China” rare earth processing ventures.  Upon request, REEx can share the global rare earth element processor rankings.

The Solid Ground: What’s True

France is indeed stepping forward with a US$245 million separation and recycling plant. Caremag will process imported concentrates alongside recycled material from end-of-life equipment. This approach mirrors Europe’s stated Critical Raw Materials Act goals: building resilience through both recycling and strategic partnerships.

It is also accurate that China still controls over 90% of the global refined supply and that Europe has no operating rare earth mines. The European Joint Research Centre’s projection—a fivefold increase in rare earth demand by 2030 for clean energy tech—is widely cited and realistic.

France has also drawn in partners: the Japan Organization for Metals and Energy Security and Iwatani, alongside automotive heavyweight Stellantis, have already secured supply contracts. These are meaningful milestones for credibility.

The Stretch: Lofty Numbers and Grand Promises

Where the article ventures into shakier territory is the 15% market share claim. Carester’s CEO suggests that producing 600 tonnes of heavy rare earths annually equates to that figure. In reality, defining “global demand” for heavy rare earths is tricky—numbers fluctuate based on market classification (dysprosium, terbium, yttrium, etc.). Many industry analysts would peg true demand at a much higher base, making the 15% claim optimistic at best.

Similarly, projections that France will quickly anchor a self-sustaining rare earth ecosystem should be treated cautiously. Facilities like Solvay’s and Less Common Metals’ planned plants are noteworthy, but Europe’s 1,000-tonne magnet target by 2027 is still a fraction of the 16,000 tonnes Europe imports annually from China.

The Narrative: Europe’s Sovereignty Push

The piece leans toward an EU industrial policy success story—France as the champion of supply chain sovereignty, fueled by nuclear-powered low-carbon energy. That narrative is politically useful, especially as Brussels seeks to show progress on its “de-risking from China” agenda. The framing downplays the fact that Caremag is still heavily dependent on Asian feedstock imports. This raises a paradox: Europe is diversifying processing, but not fully securing upstream mining.

Why This Matters

For investors and policymakers, the Lacq facility is not a silver bullet but an incremental step. It signals Europe’s willingness to back expensive industrial infrastructure, with Japan underwriting part of the risk. The project’s success will hinge on scaling up recycling, securing upstream supply partnerships, and avoiding cost overruns.

Bottom line

France’s move is significant but not transformative—yet. The road to genuine rare earth independence remains long, uneven, and still tethered to Asia.

CNA (Sep 23, 2025); Carester/Caremag company materials  

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