Advised Carester

Caremag secures €216 million in financing to build a rare earth recycling and refining plant, backed by Japanese partners and the French government

Paris (France), March 31, 2025

Financière de Courcelles acted as exclusive financial advisor to Caremag and Carester on the structuring of a €216 million financing to support the construction of a rare earth recycling and refining facility.

The plant is expected to be operational by the end of 2026 in Lacq (Pyrénées-Atlantiques, France). It will be Europe’s first rare earth recycler and the leading Western producer of separated heavy rare earths. The facility aims to deliver an annual output of 600 tons of Dysprosium and Terbium oxides (approximately 15% of current global production), along with 800 tons of Neodymium and Praseodymium oxides.

These critical materials are essential to the energy transition, particularly to produce permanent magnets used in electric vehicle motors, wind turbine generators, and a wide range of electronic components.

A strategic project supported by France and Japanese partners

The Japan Organization for Metals and Energy Security (JOGMEC), together with private group Iwatani Corporation, have committed €110 million in equity and shareholder loans to Caremag through their joint venture “Japan France Rare Earth Company.”

The French government has also played a pivotal role since the inception of the project, providing significant support through grants and repayable advances under the France Relance and France 2030 programs. In addition, Caremag was awarded a “Green Industry” tax credit (Crédit d’impôt Industrie Verte) in July 2024. In total, public support amounts to €106 million.

The financing is further complemented by contributions from the Nouvelle-Aquitaine Region, TotalEnergies through its Induslacq platform, and equity investments from Carester and its employees—21 of whom are now shareholders in Caremag.

A best-in-class industrial facility with strong environmental credentials

“Caremag will deploy proprietary advanced technologies designed to reduce CO₂ emissions, minimize water usage, and ensure zero liquid discharge,” said Frédéric Carencotte, Chairman of Carester. “Fully aligned with the European Critical Raw Materials Act, this facility marks a major step toward European sovereignty in rare earths for permanent magnets. “

Financière de Courcelles : M&A Advisor of the company

Christophe Brière , Partner CBriere@FDC-International.com

About FDC: www.financieredecourcelles.fr

Press contact: hdemirdjian@fdc-International.com

About Financière de Courcelles (FDC)

A specialist in SMEs and mid-sized companies since 1928, Financière de Courcelles advises businesses and their shareholders on M&A transactions and financing solutions, in France and internationally.

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