USA Rare Earths (NASDAQ:USAR) plans to invest approximately US$203 million (175 million euros) by 2030 to expand its permanent magnet, metals and alloy manufacturing operations in France.
The investment, which is estimated to create more than 300 jobs within the French rare earth ecosystem, builds on the company’s existing operations in the country.
The infrastructure includes the Les Commons Métals (LCM) production facility located in Lac and a joint strategic investment with Infravia Capital Partners in French processor Carester SAS.
“At USA Rare Earths, we are committed to building resilient, regional operations while building the mine-to-magnet value chain. France is an attractive location, with a strong combination of industrial infrastructure, a re-emerging rare earths processing cluster, skilled workforce and policy support to rebuild significant mineral capacity,” CEO Barbara Hampton. Said At the Choose France summit in Paris.
The company said the French government is also evaluating further support mechanisms, including loan guarantees and a possible direct equity investment in the company’s European subsidiary.
The capital allocation follows a separate domestic funding initiative. Last May, the US Department of Energy (DOE) selected USA Rare Earth to receive US$20 million grant Under the “Critical Materials Innovation, Efficiency and Alternatives” programme.
The federal grant will partially finance a US$50.5 million pilot-scale rare earth element separation project. The final project scope and budget is subject to negotiation and execution of a definitive funding agreement with DOE.
Along with expansion, USA Rare Earths is also embroiled in legal disputes domestically. Last week, California-based MP Materials (NYSE:MP) filed a lawsuit against the company, alleging that the company misused proprietary magnet-making formulations through a former employee.
MP Materials uses this specific formula to improve a magnet’s resistance to coercion, or de-magnetization. The lawsuit further alleges that USA Rare Earths disclosed the information to a third-party technology company.
USA Rare Earth denied the claims. In a public statement, the company said that “MP Materials’ complaint misrepresents our company, our culture, and our people, and we will vigorously defend ourselves.”
Both companies currently operate in various commercial stages. MP Materials last year signed a deal with the US government that included a minority ownership stake and a minimum price guarantee for specific products.
Meanwhile, USA Rare Earths received US$1.6 billion from the US government conditionally this year to finance a planned mine in Texas and a magnet factory in Oklahoma. The company aims to have commercial scale mining operations by 2028.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
