France Opens Its First Rare-Earth Recycling Plant to Counter China’s Monopoly

Rare earths fuel our everyday technologies, from smartphones to electric vehicles. Yet China controls nearly 70% of their extraction and up to 90% of their refining worldwide. In Lacq, in the Pyrénées-Atlantiques, the Caremag plant aims to change the game by becoming the first European recycler of these strategic metals.

Caremag in Lacq: 216 Million Euros to Build the First European Rare Earth Recycler

Rare earths form a group of 17 strategic metals with closely related properties. Among them, neodymium, dysprosium, and terbium play a central role in the manufacture of permanent magnets. These components equip electric motors, wind turbines, and many everyday electronic devices.

The Lyon-based company Carester, founded in 2019, is driving this industrial project through its subsidiary Caremag. In March 2025, it laid the cornerstone of its plant in the Lacq industrial basin. The total funding reached 216 million euros, secured from French and Japanese partners.

The French state contributed 106 million euros, through subsidies and a green industrial tax credit. On its side, the joint venture Japan France Rare Earth Company, pairing JOGMEC and Iwatani Corporation, committed 110 million euros in equity and shareholder debt.

At Full Capacity, the Plant Will Produce 15% of Global Dysprosium and Create 92 Direct Jobs

The commissioning of Caremag is planned for late 2026. The plant will then recycle around 2,000 tonnes of permanent magnets and refine 5,000 tonnes of mineral concentrates each year. It will produce, notably, 600 tonnes of dysprosium and terbium oxides, representing 15% of current global production.

In parallel, 800 tonnes of neodymium and praseodymium oxides will come out of this unit. Caremag will thus become the largest Western producer of heavy rare earths separated. The site will create 92 direct jobs in the Lacq basin, historically tied to fossil fuels.

Reducing Dependence on Beijing: An Urgent European Sovereignty Challenge in 2025

China accounts for about 69% of the world’s rare earth mining. It also controls nearly 90% of refining, which places Europe in a critical dependency. In 2025, Beijing tightened its export controls, creating tensions across global supply chains.

The Caremag project is part of the European Critical Raw Materials Act. This regulation sets ambitious objectives to secure access to strategic raw materials. Other French players, such as MagREEsource in Isère or Solvay in La Rochelle, complete this budding sector.

Furthermore, France launched in 2025 a broad inventory of its mineral resources, entrusted to BRGM. This 53-million-euro program over five years targets five promising geological zones. Early results concerning the Vosges are expected by mid-2026.

Less Water, Less CO₂: Recycling Rare Earths Surpasses Mining

Recycling offers substantial environmental benefits compared with traditional mining. The Caremag process reduces CO2 emissions by 60% and water consumption by 98% relative to comparable Asian facilities. Moreover, the plant guarantees zero liquid effluents.

Currently, less than 1% of permanent magnets are recycled worldwide. Caremag intends to prove that this route is viable at scale. The automaker Stellantis has even signed a ten-year contract to source from the Lacq plant.