In a strategic bid to reduce Western dependence on Chinese-controlled supply chains, UK-based Less Common Metals (LCM) has announced plans to open a new rare earth metals and alloy production facility in Lacq, France. The move will make LCM one of the few companies outside of China actively involved in the advanced stages of rare earth processing—a sector critical to the green energy transition.
The planned site will operate alongside a recycling facility being developed by Carester, a French firm focused on reprocessing permanent magnets—components vital to electric vehicles, wind turbines, and high-performance electronics. By 2027, the integrated site will aim to process recycled rare earth oxides into high-grade metals and alloys for European magnet manufacturers.
Why This Matters: Rare Earths, Rare Control
China currently dominates over 90% of the world’s rare earth processing—a fact that has placed pressure on Western governments and manufacturers to secure alternate supply routes. The planned LCM-Carester ecosystem marks a rare, concrete step in that direction, offering both new refining capacity and a closed-loop recycling model based on circular economy principles.
According to LCM Chairman Grant Smith, two key pieces remain before the €110 million project becomes reality: finalising offtake agreements and securing public-private funding. Notably, Carester has already secured €216 million in backing from Japanese investors and the French government for its Caremag unit, which is expected to recycle and refine up to 1,400 metric tons of rare earth oxides annually.
LCM will apply for funding from both the European Union and French authorities, while also exploring equity and debt financing to close its investment gap.
Europe’s Race for Rare Earth Sovereignty
France has signaled its ambition to become a European hub for rare earths, with Solvay’s recent expansion of its own rare earth facility reflecting growing national interest. LCM’s plant, located adjacent to Carester’s recycling site, would further strengthen the region’s rare earth ecosystem and reduce reliance on imports from Asia.
While LCM will continue operations at its original plant in Ellesmere Port, UK, the French expansion is a major leap toward international diversification. The company is also exploring future facilities in North America and Asia, signaling a multi-continent growth plan.
Building Rare Earth Resilience
This development is more than a plant announcement—it’s a geopolitical supply chain maneuver. Our key takeaways:
Control Over Magnet Metals = Control Over Energy Transition
Rare earths are essential for green tech and defense. Securing local processing is not just an industrial decision, it’s a national strategy.
Recycling as a Rare Earth Revenue Model
By partnering with Carester’s recycling initiative, LCM taps into the circular economy—a major ESG-driven trend that de-risks supply and meets EU sustainability goals.
Public-Private Partnerships Are Now Critical Infrastructure
From Japanese funding to French subsidies, the race for rare earth autonomy is being driven by cross-border capital stacks. Financiers should take note: this sector is entering an industrial policy supercycle.
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IMAGE: Reuters
