France: Carester launches rare earth recycling plant in Lacq with €216 mn funding

Lyon-based company Carester has begun construction of a rare earth recycling and refining plant in Lacq, Pyrénées-Atlantiques, after securing €216 million in funding from the French government and Japanese partners. The site, named Caremag, is set to begin operations by the end of 2026.

Share:

Carester, a Lyon-based company, has laid the foundation stone for its rare earth recycling and refining plant in Lacq, Pyrénées-Atlantiques. The project, named Caremag, aims to reduce Europe’s dependence on China, which currently supplies 98% of the rare earths used in Europe. This strategic sector, essential for permanent magnets in technologies such as electric vehicles and wind turbines, is at the heart of the energy transition. The plant is expected to be operational by the end of 2026, with the creation of 92 direct jobs.

French-Japanese Funding

The total funding for the project amounts to €216 million, split between the French government and Japanese partners. The French government has contributed €106 million in grants and repayable advances through the France Relance and France 2030 programmes, along with a green industry tax credit. Meanwhile, the Japanese companies Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani Corporation have invested €110 million in equity and shareholder debt through a joint venture, Japan France Rare Earths Company.

Production Capacities

The Caremag plant will focus on recycling permanent magnets, with an annual target of 2,000 tonnes processed. It will also refine 5,000 tonnes of mining concentrates to produce around 600 tonnes of heavy rare earths, primarily dysprosium and terbium, representing about 15% of the current global production. Additionally, it will produce 800 tonnes of light rare earths, mainly neodymium and prasodymium, used for manufacturing permanent magnets in strategic sectors such as electronics and robotics.

Strategic Partnerships

To secure the commercialization of its production, Carester has signed long-term agreements with several industrial partners. Automotive manufacturer Stellantis has committed to purchasing a portion of the light rare earths produced at Lacq. Furthermore, the joint venture Japan France Rare Earths Company will distribute 50% of the heavy rare earths production to Japanese industrial partners. These agreements strengthen Carester’s position as a key player in the rare earths supply chain, crucial for the global energy and technology industries.

Industrial Context

This project is part of a broader European effort to reduce dependence on rare earth imports, which are mainly controlled by China. Several initiatives have recently emerged to encourage the recycling of these critical materials. In 2024, the start-up MagREEsource opened a pilot plant in Isère to produce magnets from recycled materials, with an annual capacity of 50 tonnes. Additionally, Belgian group Solvay operates a plant in La Rochelle for the production of rare earth-based products and is set to begin producing oxides for permanent magnets. These projects highlight the growing importance of rare earth recycling in Europe at a time when demand for these materials is surging.

TotalEnergies is selling half of a 604 MW Portuguese energy portfolio to the Japanese consortium MM Capital, Daiwa Energy and Mizuho Leasing for €178.5mn, retaining operation and future commercialisation of the assets concerned.
Q ENERGY France secures a bank financing of €109 million arranged by BPCE Energeco to build four new energy production facilities, totalling 55 MW of wind and solar capacity by the end of 2024.
Shell announces amendment of two annual reports after notification by Ernst & Young of non-compliance with SEC auditor partner rotation rules; however, financial statements remain unchanged.
The Financial Superintendency of Colombia approves an amendment to Ecopetrol’s local bonds and commercial paper program, enabling issuance of sustainable, indexed, or in-kind repayable instruments.
ABO Energy is selling its subsidiary ABO Energy Hellas and an energy project portfolio of approximately 1.5 gigawatts to HELLENiQ ENERGY Holdings, thus refocusing its strategic resources towards other markets, notably Germany, without major financial impact anticipated for 2025.
BHP has signed contracts with COSCO Shipping to charter two ammonia-powered Newcastlemax bulk carriers, primarily for transporting iron ore between Western Australia and Northeast Asia starting from 2028.
CBAK Energy and Anker Innovations jointly launch a battery cell manufacturing facility in Malaysia, with a commercial potential estimated at $357 million, further strengthening their strategic partnership in the lithium-ion battery sector.
German energy group Badenova plans to invest $4.64 billion in its energy networks and capacity by 2050, including $232 million committed from 2025, according to the company's recently published annual financial results.
ORIX announces the sale of the majority of its stake in Greenko to AM Green Power and commits a new USD 731mn investment in the Luxembourg-based AMG holding, confirming its strategic repositioning in next-generation energy.
Invenergy seals four further contracts with Meta to supply nearly eight hundred megawatts of solar and wind power to the group’s data centres, lifting total cooperation between the two companies to one point eight gigawatts.
Pedro Azagra leaves his role as CEO of Avangrid to become CEO of Iberdrola, while Jose Antonio Miranda and Kimberly Harriman succeed him as CEO and Deputy CEO respectively of the American subsidiary.
The US investment fund Ares Management enters Plenitude's capital by acquiring a 20% stake from Eni, valuing the Italian company at 10 billion euros and reinforcing its integrated energy strategy.
ENGIE secures a contract to reduce Airbus' industrial emissions in France, Germany, and Spain, targeting an 85% decrease by 2030 through various local energy infrastructures.
Alain Rhéaume, Chairman of Boralex’s Board of Directors for eight years, will leave his position by December, following the appointment of his successor by the governance committee of the Canadian energy group.
Norwegian group Statkraft plans an annual cost reduction of NOK2.9bn ($292 million) by 2027, citing possible job cuts amid rising financial burdens and volatility in the European energy market.
EDF merges EDF Renouvelables and its International Division into EDF power solutions, led by Béatrice Buffon, to optimise its global 31 GW low-carbon energy portfolio and strengthen its international positioning.
TotalEnergies announces a strategic partnership with Mistral AI to establish a dedicated innovation laboratory integrating artificial intelligence tools aimed at enhancing industrial efficiency, research, and customer relations.
The Energy Transitions Commission warns of economic risks tied to growing protectionism around clean technologies, while calling for global consensus on carbon pricing.
Baker Hughes has reached an agreement to sell its precision sensor product line to Crane Company for $1.15bn, thereby refocusing its operations on core competencies in industrial and energy technologies.
American conglomerate American Electric Power sold 19.9% of two transmission subsidiaries to KKR and PSP Investments, raising $2.82bn to support its five-year $54bn investment plan.