Caremag SAS, a subsidiary of Carester SAS (Lyon, France), has secured €216 million to build its new rare earth recycling and refining industrial facility in Lacq, in the south of France. Expected to begin operations by late 2026, this project is backed by €110 million from Japanese investors and €106 million from the French government.
The Caremag facility will recycle 2,000 tons of magnets and refine 5,000 tons of mining concentrates annually, positioning itself as Europe’s first large-scale rare earth recycling facility and the largest western producer of purified heavy rare earth. With an output of 600 tons of Dysprosium and Terbium oxides – representing around 15% of the global production – and 800 tonnes of Neodymium and Praseodymium oxides, Caremag will play a vital role in supplying key materials for electric vehicles, wind turbines, and advanced electronics.
This ambitious industrial project is made possible through the joint support of France and key Japanese partners. The Japan Organization for Metals and Energy Security (JOGMEC) and the private firm Iwatani Corporation, through their joint venture, “Japan France Rare Earth Company”, have announced today their decision to invest up to €110 million in equity and shareholder loans in the Caremag plant. This investment includes a long-term supply agreement to provide Japan with heavy rare earth oxides.
The French government is playing a major role in this investment, with financial support provided from the outset in the form of subsidies and repayable advances granted under the France Relance and France 2030 project calls, as well as a Green Industry tax credit granted in July 2024, totaling €106 million.
Finally, the support from the Nouvelle-Aquitaine region and TotalEnergies through its Induslacq platform, along with equity contributions from Carester and its employees (21 of whom are shareholders in Caremag), complete this financing.
Looking towards the future, the Caremag plant will create 92 direct jobs, meet the highest environmental standards and leverage Artificial Intelligence to optimize production.
“Caremag will incorporate patented cutting-edge technologies designed to reduce CO₂ emissions while minimising water consumption and ensuring the absence of liquid effluents. Moreover, over 80% of direct CO₂ emissions will be recycled within the process.“ says Frédéric Carencotte, President of Carester. “This project aligns with the European Critical Raw Materials Act and represents a major step towards Europe’s independence in rare earths for permanent magnets.”