France and Japan Forge Alliance to Establish Europe’s First Rare Earth Recycling Plant

France and Japan are partnering to build Europe’s first large-scale rare earth recycling plant in Lacq, expected to begin operations by the end of 2026 and reduce reliance on Chinese supplies. The facility will recycle significant amounts of rare earth metals, critical for electronics and clean energy.

China’s dominance in rare metals has raised concerns worldwide, prompting France and Japan to collaborate in establishing Europe’s inaugural large-scale rare earth recycling plant. This facility, being developed in Lacq, France, is anticipated to become the western region’s largest producer of purified heavy rare earths, as reported by the Central News Agency.

The facility is set to initiate operations by the end of 2026, with automaker Stellantis already onboard as a customer. As detailed in the press release, Caremag, a subsidiary of Carester, has secured EUR 216 million in funding. Of this total, EUR 110 million is sourced from Japanese institutions, including the Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani, while the French government contributes the remaining EUR 106 million.

This project aims to decrease Europe’s reliance on China, which currently supplies 98% of the continent’s rare earths, according to EnergyNews. The Caremag facility is expected to recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates annually. This output should yield 600 tonnes of Dysprosium and Terbium oxides—approximately 15% of the global production—as well as 800 tonnes of Neodymium and Praseodymium oxides.

Rare earth elements, along with the permanent magnets derived from them, are crucial for the electronics sector and find extensive applications in electric vehicles, wind turbines, and robotics. Given their importance, the establishment of this plant presents considerable strategic benefits, particularly for the advancement of clean energy and high-tech manufacturing.

The collaboration between France and Japan to construct Europe’s first large-scale rare earth recycling facility marks a significant step towards reducing Europe’s reliance on China. With substantial funding secured and strategic operations planned for 2026, the facility will play a vital role in supplying essential rare earth elements critical to modern technology and clean energy. This initiative not only strengthens Europe’s position in the global rare metals market but also supports the pursuit of energy independence and technological advancement.

Original Source: www.trendforce.com