USA Rare Earth Announces Strategic Minority Investment in Rare Earth Processor Carester SAS
USA Rare Earth, Inc. has entered into a term sheet for a strategic minority investment in Carester SAS, a prominent leader in rare earth processing and separation. This agreement is designed to secure critical capabilities and output for USA Rare Earth, including a right to purchase some of Carester’s oxide output and access to Carester’s engineering expertise and intellectual property for separation, processing, and recycling. Furthermore, the partnership establishes a supply arrangement for heavy rare earth feedstock from USA Rare Earth’s Round Top deposit, enhancing vertical integration and supply chain security. The transaction remains subject to customary closing conditions, including due diligence and definitive documentation.
Key Highlights
- USA Rare Earth entered a term sheet for a minority investment in Carester SAS, a leader in rare earth processing and separation.
- The agreement includes a right for USA Rare Earth to purchase a portion of Carester’s oxide output.
- USA Rare Earth gains access to Carester’s engineering capabilities and intellectual property for rare earth separation, processing, and recycling.
- A supply arrangement is established for heavy rare earth feedstock from USA Rare Earth’s Round Top deposit to Carester.
- The contemplated transaction is subject to customary conditions, including confirmatory due diligence and execution of definitive documentation.