Mentioned:
USA Rare Earth is preparing to invest hundreds of millions of dollars in France. But, why?
What’s happening:
- USA Rare Earth (NASDAQ: USAR) has publicly stated they plan to invest approximately $200M USD into expanding their rare earth metal, alloy and magnet manufacturing operations in France
Why it matters:
- This is the single largest funding commitment USA Rare Earth has ever made in France
Going deeper:
- USA Rare Earth is currently developing a alloy production plant located in Lacq, France through their Less Common Metals subsidiary and owns a meaningful equity stake in French company Carester who is building a rare earth oxide facility
- USA Rare Earth recently made major waves when they entered into an agreement to purchase Brazil based Serra Verde Group in a cash and stock deal worth roughly $2.8B USD
The intrigue:
- The United States Department of Commerce previously gave USA Rare Earth a funding commitment of $1.6B USD to accelerate the build out of a domestic rare earth supply chain that reduces America’s dependence on China
