Highlights
- French company Carester secures €216 million to build a state-of-the-art rare earth recycling facility in Lacq, France.
- The plant will recycle 2,000 tonnes of magnets annually.
- The facility will produce 600 tonnes of critical rare earth oxides for electric vehicles and electronics.
- The project aims to reduce Europe’s 98% dependency on Chinese rare earth imports.
- The initiative is expected to create 92 direct jobs.
_On March 17, 2025, Carester, a French company specializing in rare earth refining, [announced](https://www.carester.fr/en/caremag-launch/) that its subsidiary, Caremag, has secured €216 million in funding to build a state-of-the-art rare earth recycling and refining facility in Lacq, located in the south of France. The project, which is set to begin operations by late 2026, represents a major step in strengthening Europe’s rare earth value chain and reducing its dependence on Chinese imports._
The financing consists of €110 million from Japanese investors and €106 million from the French government. The Japan Organization for Metals and Energy Security (opens in a new tab) (JOGMEC) and Iwatani Corporation (opens in a new tab) have joined forces through their joint venture to invest in the plant and secure long-term supply agreements for Japan. The French government’s financial backing includes subsidies, repayable advances from the France Relance and France 2030 initiatives, and a Green Industry tax credit awarded in July 2024. Additional support comes from the Nouvelle-Aquitaine region, TotalEnergies’ Induslacq platform, and equity contributions from Carester and its employees, 21 of whom are shareholders in Caremag.
The Caremag facility (opens in a new tab) aims to become Europe’s first large-scale rare earth recycling plant and the largest producer of purified heavy rare earths in the Western world. It is expected to recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates annually. With a projected output of 600 tonnes of dysprosium and terbium oxides—equivalent to approximately 15% of the global market—alongside 800 tonnes of neodymium and praseodymium oxides, the facility will provide essential materials for electric vehicles, wind turbines, and advanced electronics.
Beyond its industrial and economic significance, the project integrates advanced environmental practices. The plant will employ patented technologies to minimize CO₂ emissions, with over 80% of direct emissions being recycled within the process. Additionally, it is designed to significantly reduce water consumption and eliminate liquid effluents, aligning with the European Critical Raw Materials Act’s objectives.
Frédéric Carencotte, President of Carester, emphasized the project’s strategic importance, stating, “Caremag represents a major step toward European independence in rare earths for permanent magnets.” The facility will also create 92 direct jobs, further bolstering the local economy.
An Energynews report (opens in a new tab) from March 18, 2025, adds further context, highlighting Carester’s broader goal of reducing Europe’s reliance on China, which currently supplies 98% of the continent’s rare earths. The publication noted that Carester has secured key commercial agreements to ensure the commercialization of its production. Automotive giant Stellantis has signed a deal to purchase a share of the light rare earths produced at the plant, while the Japan France Rare Earths Company has committed to distributing 50% of the heavy rare earth output to Japanese industrial partners.
The initiative aligns with a growing European movement to develop a domestic supply chain for rare earths. Similar projects include the start-up MagREEsource’s pilot plant in Isère, which produces magnets from recycled materials, and Solvay’s facility in La Rochelle, which is expanding into oxide production for permanent magnets. These efforts reflect Europe’s increasing focus on securing critical materials for the energy transition and technological advancements.
With Caremag’s launch, Carester believes it is poised to play a leading role in reshaping the rare earth industry in Europe, reinforcing supply security for essential technologies while setting new environmental benchmarks for rare earth processing.
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