USA Rare Earth (USAR) Status update summary

Strategic investment overview

• Announced acquisition of a 12.5% equity stake in Carester for EUR 40 million, alongside InfraVia and French government-backed funds, with Carester securing EUR 216 million in support.

• Entered into 15-year supply and offtake agreements, plus a technology and services framework with IP licensing, securing access to rare earth oxides and engineering support.

• Partnership provides direct access to critical heavy rare earths (dysprosium, terbium) and strengthens the mine-to-magnet value chain, supporting European expansion.

• Investment accelerates access to heavy rare earth and recycled magnet IP, supporting circular economy initiatives and industrial validation across allied nations.

• French government support includes financial credits, loan guarantees, and CapEx reimbursement for planned facilities.

Supply, offtake, and technology agreements

• 15-year supply and offtake agreements allow purchase of up to 50% of heavy rare earth oxides from contributed feedstock, supporting downstream alloy and magnet production.

• Supply agreement creates a non-Chinese processing pathway for Round Top and other deposits, enhancing supply chain security.

• Master framework established for engineering support, collaboration, and IP licensing, with new IP owned by the investor.

• Technology and services agreement provides access to proprietary separation, recycling, and radioactivity removal technologies.

• Platform approach brings together fragmented value chain elements, accelerating scaling and matching deposits to processors.

Carester company and facility profile

• Carester is a leading European heavy rare earth IP and processing technology company, founded in 2019.

• Facility in Lacq, France, will process 7,000 tons/year, including 2,000 tpa end-of-life magnets and 5,000 tpa mining concentrates, producing 800 tons NdPr, 500 tons dysprosium, and 100 tons terbium oxides.

• Carester targets 15% of current global heavy rare earth oxide production.

• Proprietary simulation software and four patented innovations in separation, recycling, and boron removal.

• Facility expected to be operational in Q3 2026, reaching run rate in Q1 2027.