[News] France and Japan to Build Europe’s First Rare Earth Recycling Plant, Countering China’s Dominance

China’s global dominance in rare metals has raised alarms across industries worldwide. According to a report from Central News Agency, citing press release from French rare earth refining company Carester, France and Japan are joining forces to build Europe’s first large-scale rare earth recycling facility in Lacq, France. The plant is expected to become the largest producer of purified heavy rare earths in the West, as the report notes.

The report highlights that the facility is scheduled to begin operations by the end of 2026. As the report also notes, automaker Stellantis has reportedly committed as a customer.

As noted in the press release, the French company Caremag—a subsidiary of Carester—has secured EUR 216 million in funding. Of this amount, EUR 110 million comes from Japanese backers, including the Japan Organization for Metals and Energy Security (JOGMEC) and the private company Iwatani, while the remaining EUR 106 million is provided by the French government.

The project aims to reduce Europe’s reliance on China, which currently supplies 98% of the rare earths used across the continent, as indicated by EnergyNews.

The Caremag facility will recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates annually. Its output is expected to include 600 tonnes of Dysprosium and Terbium oxides—about 15% of global production—as well as 800 tonnes of Neodymium and Praseodymium oxides, according to the press release.

Rare earth elements—and the permanent magnets made from them—are essential to the electronics industry and are widely used in electric vehicles, wind turbines, and robotics. Given their critical applications, the project carries significant strategic value, particularly for advancing clean energy and high-tech manufacturing, as highlighted by Central News Agency.

Read more

• [News] U.S. and Australia Seek Countermeasures, Impact of China’s Critical Material Ban Expected to Wane in the Long Run
• [News] China’s Gallium and Germanium Export Restrictions Risk Chip Production Shortages
• [News] Chip War Escalates: China to Enforce State Ownership of All Rare Earth Materials in October

(Photo credit: Carester)