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Will USAR's Carester Investment Enhance Rare-Earth Supply Chains?
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Key Takeaways
USAR to acquire ~12.5% of Carester with InfraVia, tied to Caremag facility set to start in 2026.
USA Rare Earth gains oxide supply, tech and recycling access, while supplying Round Top materials from 2028.
USAR backs integrated France platform; govt subsidies and loans may reduce costs and strengthen supply chain.
USA Rare Earth, Inc. (USAR - Free Report) has entered into an agreement with InfraVia to acquire approximately a 12.5% stake in a France-based rare earth processing company, Carester SAS. Carester focuses on efficient and environmentally friendly rare earth processing. Its Caremag facility in France is expected to start operations in 2026.
Per the deal, USA Rare Earth and its subsidiary, Less Common Metals (LCM) Europe, will be able to purchase rare earth oxides from Carester’s Caremag facility. They will also gain access to Carester’s technology and expertise in rare earth separation, processing and recycling. In return, Carester will receive a long-term supply of raw materials from USAR’s Round Top project in Texas, which is expected to begin operations in 2028. The deal is subject to due diligence and final agreements.
Together, USA Rare Earth, LCM Europe and Carester plan to build a fully integrated rare earth platform in France. This will include processing, metal and alloy production and magnet manufacturing. USAR is also developing a metal and alloy plant at the same site, which will add to its production capacity.
The French government is expected to provide financial support through subsidies and loan guarantees, helping reduce project costs. The partnership aims to strengthen USAR’s rare earth supply chain and reduce dependence on external sources.
Notable Partnerships of USAR’s Peers
Among its major peers, MP Materials Corp. (MP - Free Report) recently formed a joint venture with the U.S. Department of War and Saudi Arabia’s mining company (Maaden) to build a rare-earth refinery in Saudi Arabia. MP Materials will use its technical expertise to process rare-earth materials for the US, Saudi Arabia and allied manufacturing and defense industries. MP Materials’ joint venture will strengthen global supply chains, expand its refining capacity and support U.S.-Saudi economic ties.
In August 2025, USAR’s peer, Energy Fuels Inc. (UUUU - Free Report) , signed an MOU with Vulcan Elements to supply rare earth oxides for US-based magnet production. Per the deal, Energy Fuels will provide NdPr and Dy oxides to Vulcan from its White Mesa Mill in Utah for quality verification and future long-term supply. Energy Fuels is producing high-purity, ex-China rare earth oxides at a commercial scale, supporting a domestic rare earth magnet supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 42.8% in the year-to-date period compared with the industry’s growth of 23.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 18.18X against the industry’s average of 15.27X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Will USAR's Carester Investment Enhance Rare-Earth Supply Chains?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) has entered into an agreement with InfraVia to acquire approximately a 12.5% stake in a France-based rare earth processing company, Carester SAS. Carester focuses on efficient and environmentally friendly rare earth processing. Its Caremag facility in France is expected to start operations in 2026.
Per the deal, USA Rare Earth and its subsidiary, Less Common Metals (LCM) Europe, will be able to purchase rare earth oxides from Carester’s Caremag facility. They will also gain access to Carester’s technology and expertise in rare earth separation, processing and recycling. In return, Carester will receive a long-term supply of raw materials from USAR’s Round Top project in Texas, which is expected to begin operations in 2028. The deal is subject to due diligence and final agreements.
Together, USA Rare Earth, LCM Europe and Carester plan to build a fully integrated rare earth platform in France. This will include processing, metal and alloy production and magnet manufacturing. USAR is also developing a metal and alloy plant at the same site, which will add to its production capacity.
The French government is expected to provide financial support through subsidies and loan guarantees, helping reduce project costs. The partnership aims to strengthen USAR’s rare earth supply chain and reduce dependence on external sources.
Notable Partnerships of USAR’s Peers
Among its major peers, MP Materials Corp. (MP - Free Report) recently formed a joint venture with the U.S. Department of War and Saudi Arabia’s mining company (Maaden) to build a rare-earth refinery in Saudi Arabia. MP Materials will use its technical expertise to process rare-earth materials for the US, Saudi Arabia and allied manufacturing and defense industries. MP Materials’ joint venture will strengthen global supply chains, expand its refining capacity and support U.S.-Saudi economic ties.
In August 2025, USAR’s peer, Energy Fuels Inc. (UUUU - Free Report) , signed an MOU with Vulcan Elements to supply rare earth oxides for US-based magnet production. Per the deal, Energy Fuels will provide NdPr and Dy oxides to Vulcan from its White Mesa Mill in Utah for quality verification and future long-term supply. Energy Fuels is producing high-purity, ex-China rare earth oxides at a commercial scale, supporting a domestic rare earth magnet supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 42.8% in the year-to-date period compared with the industry’s growth of 23.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 18.18X against the industry’s average of 15.27X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.