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:

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

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.

Aramco becomes Petro Rabigh's majority shareholder after purchasing a 22.5% stake from Sumitomo, consolidating its downstream strategy and supporting the industrial transformation of the Saudi petrochemical complex.
Chevron India expands its capabilities with a 312,000 sq. ft. engineering centre in Bengaluru, designed to support its global operations through artificial intelligence and local technical expertise.
Amid rising energy costs and a surge in cheap imports, Ineos announces a 20% workforce reduction at its Hull acetyls site and urges urgent action against foreign competition.
Driven by growing demand for strategic metals, mining mergers and acquisitions in Africa are accelerating, consolidating local players while exposing them to a more complex legal and regulatory environment.
Ares Management has acquired a 49% stake in ten energy assets held by EDP Renováveis in the United States, with an enterprise value estimated at $2.9bn.
Ameresco secured a $197mn contract with the U.S. Naval Research Laboratory to upgrade its energy systems across two strategic sites, with projected savings of $362mn over 21 years.
Enerflex Ltd. announced it will release its financial results for Q3 2025 before markets open on November 6, alongside a conference call for investors and analysts.
North Atlantic and ExxonMobil have signed an agreement for the sale of ExxonMobil’s stake in Esso S.A.F., a transaction subject to regulatory approvals and financing agreements to be finalised by the end of 2025.
The Canadian pension fund takes a strategic minority stake in AlphaGen, a 11 GW U.S. power portfolio, to address rising electricity demand from data centres and artificial intelligence.
Minnesota’s public regulator has approved the $6.2bn acquisition of energy group Allete by BlackRock and the Canada Pension Plan, following adjustments aimed at addressing rate concerns.
Statkraft continues its strategic shift by selling its district heating unit to Patrizia SE and Nordic Infrastructure AG for NOK3.6bn ($331mn). The deal will free up capital for hydropower, wind, solar and battery investments.
Petronas Gas restructures its operations by transferring regulated and non-regulated segments into separate subsidiaries, following government approval to improve transparency and optimise the group’s investment management.
Marubeni Corporation has formed a power trading unit in joint venture with UK-based SmartestEnergy, targeting expansion in Japan’s fast-changing deregulated market.
Exxon Mobil plans to reduce its Singapore workforce by 10% to 15% by 2027 and relocate its offices to the Jurong industrial site, as part of a strategic investment shift.
Phoenix Energy raised $54.08mn through a preferred stock offering now listed as PHXE.P on NYSE American, with an initial dividend scheduled for mid-October.
TotalEnergies plans to increase its energy production by 4% annually until 2030, while reducing global investments by $7.5bn amid what it describes as an uncertain economic environment.
Occidental Petroleum is considering selling its chemical subsidiary OxyChem for $10bn, a transaction that forms part of its deleveraging strategy launched after several major acquisitions.
ABO Energy is assessing a shift to independent power production by operating its own renewable parks, signalling a major strategic move in a market that has become more favourable.
Fortescue accelerates the decarbonisation of its operations by leveraging an international network of technology and industrial partners, targeting net zero at its mining sites by 2030.
Mexican state-owned company Pemex confirmed the partial acceptance of bond securities under its debt repurchase offer, with a total allocation of $9.9bn, following strong oversubscription.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.