France and Japan are teaming up to construct Europe’s first large-scale rare earth recycling facility in Lacq, expected to begin operations by the end of 2026. This project aims to lessen Europe’s reliance on China, which currently provides nearly all rare earth materials needed. The facility will recycle significant quantities of rare earth elements, crucial for various high-tech applications.
China’s significant dominance in the global rare metals market has prompted concerns across various industries. In response, France and Japan are collaborating to establish Europe’s first large-scale rare earth recycling facility in Lacq, France. This facility, as reported by Central News Agency, is expected to emerge as the largest producer of purified heavy rare earths in the western region.
Set to commence operations by the end of 2026, this innovative plant has garnered the support of automaker Stellantis, which is confirmed as a customer. The project is spearheaded by Caremag, a subsidiary of the French rare earth refining company Carester, which has successfully secured EUR 216 million in funding.
Funding sources include EUR 110 million from Japanese investors such as the Japan Organization for Metals and Energy Security (JOGMEC) and the private company Iwatani, with the remaining EUR 106 million coming from the French government. This initiative aims to decrease Europe’s heavy dependence on China, which currently provides 98% of the region’s rare earth elements, as reported by EnergyNews.
The Caremag facility is projected to recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates each year. The expected output includes 600 tonnes of Dysprosium and Terbium oxides—approximately 15% of global production—along with 800 tonnes of Neodymium and Praseodymium oxides, as detailed in the press release.
Rare earth elements and their derivative permanent magnets play crucial roles in the electronics sector, finding extensive applications in electric vehicles, wind turbines, and robotics. Due to their importance, this project holds significant strategic value, particularly in promoting clean energy initiatives and advancing high-tech manufacturing capabilities, as noted by Central News Agency.
In conclusion, the collaboration between France and Japan to establish a rare earth recycling plant represents a significant step towards enhancing Europe’s self-sufficiency in rare metals. By reducing reliance on China and increasing local production capabilities, this initiative not only strengthens the market position of both countries but also supports the advancement of clean energy technologies and high-tech manufacturing.
Original Source: www.trendforce.com
