USA Rare Earth, Inc. reported a major move into the European market through its subsidiary Less Common Metals (LCM), announcing plans to build a metal and alloy production facility in Lacq, France. The plant will have an annual capacity of 3,750 metric tons, marking the first phase of USAR’s effort to establish a full-scale rare-earth value chain outside North America. This expansion is scheduled to begin site work in mid-2026 and reach full production by late 2028.

The Lacq project has secured significant incentives under France’s C3IV program. USAR will receive direct tax credits covering up to 45% of eligible equipment costs and real estate financing of up to $152 million (approximately €130 million). In addition, the French government will fund workforce development initiatives, including specialized training programs and hiring subsidies, designed to cultivate a local talent pool tailored to advanced rare-earth metal manufacturing.

The new plant will be co-located with Carester SAS’s 1,600 mtpa Caremag oxide processing facility, slated for commissioning in late 2026. By integrating oxide processing with metal and alloy production, USAR aims to create Europe’s first end-to-end rare-earth processing platform. This integration is expected to reduce logistical complexity, strengthen supply-chain resilience for U.S. and allied industries, and support forecasted annual output of 5,350 metric tons of rare-earth products across both facilities.

Following the expansion announcement, USAR shares climbed 6.95% in a single session, reflecting investor confidence in regulatory backing for critical-minerals independence. The company has now added over 55% in share value since early January, driven by growing demand for rare-earth materials in defense, renewable-energy and advanced manufacturing sectors. Industry analysts highlight that Europe’s first fully integrated rare-earth platform will position USAR as a key supplier to NATO allies and high-tech OEMs seeking secure, non-Chinese sources.