France and Japan plan to build Europe’s first large-scale rare earth recycling plant in Lacq, aimed at countering China’s rare metal dominance. Expected to start operations by late 2026, it has secured EUR 216 million in funding, with significant investments from both French and Japanese organizations. The facility will produce key rare earth elements essential for various technologies and renewable energy applications.
The forthcoming collaboration between France and Japan aims to establish Europe’s inaugural large-scale rare earth recycling facility in Lacq, France. This initiative, spurred by China’s dominance in the rare metals sector, intends to produce purified heavy rare earths, marking a significant step for Western manufacturing. The facility is expected to commence operations by the close of 2026, with Stellantis, a prominent automaker, already committed as a customer.
Funding for this ambitious project has reached EUR 216 million, with contributions split between Japanese investors, notably the Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani, amounting to EUR 110 million. The French government will provide the remaining EUR 106 million. This investment underscores the project’s goal to diminish Europe’s dependency on China, which currently supplies 98% of the continent’s rare earth elements.
The Caremag facility plans to recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates each year. Notably, it aims to produce 600 tonnes of Dysprosium and Terbium oxides—approximately 15% of the global output—as well as 800 tonnes of Neodymium and Praseodymium oxides. These elements are crucial for several high-tech applications, including electronics and clean energy solutions.
Rare earth elements and their applications are vital for advancements in electric vehicles, wind turbines, and robotics. Therefore, this project not only addresses economic concerns but also possesses a strategic importance for energy and technology sectors, positioning Europe for a more sustainable and independent future in high-tech manufacturing.
In summary, the joint endeavor between France and Japan to establish a rare earth recycling plant in Lacq represents a pivotal development in Europe’s quest to reduce reliance on China for essential rare metals. With significant funding and strategic partnerships, this facility is poised to enhance production capabilities of crucial elements necessary for the electronics and clean energy industries.
Original Source: www.trendforce.com
