France Builds Strategic Rare Earths Industry in Lacq to Reduce Dependence on China

Rare earth elements (REE), critical for electronics, energy, and new mobility technologies, are currently dominated by Chinese suppliers, accounting for 90% of the global supply. France, which historically led the sector through companies like Péchiney-Saint-Gobain and Rhône-Poulenc, is now taking major steps to restore its sovereignty in this strategic field.

In Lacq, southwestern France, the new Caremag factory is under construction with ambitious production goals. By 2027, it aims to produce 1,400 tons of pure rare earth oxides annually, including 600 tons of heavy rare earths, which would represent 15% of the global production. The facility will process 5,000 tons of ore concentrates and 2,000 tons of recycled permanent magnets each year, addressing the fact that only 1% of rare earths in magnets are currently recycled. This €180 million project has received €106 million in financial support from the French government and the Nouvelle-Aquitaine region.

Caremag currently employs 47 people and plans to nearly double its workforce to 92 by the factory’s opening, with ongoing recruitment to support its growth. Adding to this momentum, USA Rare Earth has announced an investment of €110 million in Lacq, creating around 80 direct jobs and strengthening the rare earth industry cluster.

This initiative is seen as vital for French and European industrial sovereignty. The region, dubbed "the valley of magnets," is emerging as a key site in the global rare earths market, aiming to reduce Europe's heavy reliance on Chinese dominance and Asian recycling processes.

By reestablishing local production and recycling capabilities, France bolsters its economic security and technological independence, potentially influencing sectors ranging from electronics to green energy and defense.