France and Japan are set to build Europe’s first large-scale rare earth recycling plant in Lacq by 2026. This plant, backed by EUR 216 million in funding, aims to reduce Europe’s 98% reliance on China for rare earths. Caremag will recycle significant quantities of magnets and refine key elements like Dysprosium and Neodymium, essential for modern technology.
China’s significant control over rare earth metals has prompted a response from France and Japan, who are collaborating to establish Europe’s first large-scale rare earth recycling facility in Lacq, France. This plant is poised to be the largest producer of purified heavy rare earths in the Western region and is scheduled to commence operations by the end of 2026. Automaker Stellantis has expressed interest in becoming a customer of the facility.
The French company Caremag, a subsidiary of Carester, has secured a total funding of EUR 216 million for this initiative. Of this investment, EUR 110 million is sourced from Japanese entities like the Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani, while the French government contributes the remaining EUR 106 million. This financial backing underscores the collaborative international effort to diminish Europe’s dependence on Chinese rare earth supplies.
Currently, China serves as a supplier for 98% of the rare earths utilized in Europe. By developing the Caremag facility, the project intends to recycle around 2,000 tonnes of magnets and process 5,000 tonnes of mining concentrates each year. This includes anticipated outputs of 600 tonnes of Dysprosium and Terbium oxides, approximating 15% of global production, along with 800 tonnes of Neodymium and Praseodymium oxides.
Rare earth elements and the permanent magnets derived from them play a crucial role in the electronics sector, finding applications in electric vehicles, wind turbines, and robotics. The strategic importance of this project is further emphasized by its potential to enhance clean energy initiatives and support advanced manufacturing in high-tech industries.
The partnership between France and Japan to build Europe’s first large-scale rare earth recycling plant represents a significant step in reducing reliance on Chinese rare earth supplies, which currently dominate the continent. With substantial funding and a clear operational plan focused on recycling and production, the facility is set to make a notable impact in strategic industries such as clean energy and technology manufacturing.
Original Source: www.trendforce.com
