France and Japan Collaborate to Establish Europe’s First Rare Earth Recycling Plant
France and Japan are developing Europe’s first large-scale rare earth recycling plant in Lacq, aiming to reduce reliance on China, which currently supplies 98% of Europe’s rare earths. With EUR 216 million in funding, the facility is expected to start operations by the end of 2026 and produce significant amounts of critical rare earth elements. This project strategically supports clean energy and high-tech manufacturing sectors.
In a significant development, France and Japan are collaborating to establish Europe’s inaugural large-scale rare earth recycling facility in Lacq, France, aimed at diminishing China’s current dominance in rare metals. This initiative, reported by the Central News Agency and initiated by French rare earth refining entity Carester, is poised to become the leading producer of purified heavy rare earths in the West, with operations expected to commence by the end of 2026.
The project has gained substantial financial backing, with Caremag, a subsidiary of Carester, securing a total of EUR 216 million. This funding comprises EUR 110 million from Japanese investors, such as the Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani, alongside EUR 106 million contributed by the French government. Such investment underscores the importance of this facility in enhancing local access to rare earth resources.
The facility is designed to process 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates each year. Its output is projected to include 600 tonnes of Dysprosium and Terbium oxides—accounting for approximately 15% of global production—and 800 tonnes of Neodymium and Praseodymium oxides. These rare earth elements are critical to various industries, particularly in the manufacturing of electric vehicles, wind turbines, and robotics.
This effort addresses Europe’s heavy reliance on Chinese supplies, which currently provide 98% of the continent’s rare earth needs, as indicated by EnergyNews. The implications of this project extend beyond economic considerations, representing a strategic move toward fostering sustainable energy and advancing high-tech manufacturing capabilities, thereby amplifying Europe’s position in these critical sectors.
In summary, the partnership between France and Japan to establish a rare earth recycling facility signifies a critical step towards reducing Europe’s dependence on China for rare earth metals. With substantial financial backing and a clear operational goal, this project is set to enhance Europe’s raw material independence, while also supporting various high-tech industries and clean energy initiatives. The facility’s production will play a vital role in addressing global demand for essential rare earth elements.
Original Source: www.trendforce.com
