Why Is a UK Rare Earth Processor Looking to France for €110 Million?

Why Is a UK Rare Earth Processor Looking to France for €110 Million?

Let’s cut to the chase. A UK company, Less Common Metals (LCM), known for its expertise in rare earth metals, is planning to pour €110 million into a new processing facility in France. And no, this isn’t a random investment; it’s a strategic move born out of necessity—and maybe a little bit of foresight.

You know, I am not new to this. I’ve watched the rare earths game for over a decade. China controls around 90% of the processed rare earths globally. That’s a chokehold. The recent export controls imposed by China only highlight how fragile Western supply chains truly are. So, here’s the question: why is a UK-based processor—the company that has long wanted to diversify supply—looking across the Channel? Because it makes sense. Europe, and France in particular, is positioning itself as a critical hub for these vital materials. And LCM’s move to Lacq isn’t just about expansion; it’s about resilience.

The Strategic Shift Towards France

Let’s talk about the why. France isn’t just sitting around waiting for supply chain disruptions. The country is actively building an ecosystem for rare earths. They’ve got a recycling and refining plant by Carester, and they’re planning more in Lacq—alongside Solvay’s existing non-Chinese separation plant. It’s about creating an alternative to the Chinese dominance. And they’re doing it with a clear focus—processing recycled oxides for permanent magnet production. That’s a big deal because these magnets are the backbone of electric vehicle motors, wind turbines, and countless electronic applications.

“Creating an ecosystem for rare earths in France is about reducing dependence and fostering technological independence,” says industry analyst.

And here’s another thing. LCM’s decision to build adjacent to Carester’s plant isn’t accidental. It’s a move to cut costs, streamline logistics, and—most importantly—build a regional supply chain that doesn’t rely solely on China. Remember, the West is doubling down on securing critical materials. You know, the kind that keep technological progress moving forward.

Securing the Future of Critical Materials

This project isn’t just about making magnets. It’s about gaining independence. People are embarrassed or ashamed to talk about money, but the truth is, supply chain security is a matter of money. And the recent geopolitical shifts are forcing companies and countries to rethink their strategies. France’s push to become a European hub for rare earths reflects a broader effort to diversify sources and reduce vulnerability. France’s industrial base, robust research environment, and support from the government make it an attractive location.

Now, let’s think about the timeline. LCM aims to start production by 2027. That’s not far off, considering how long these projects take to develop, fund, and build. They’re counting on raw materials from Carester’s new plant, which makes the whole operation a tightly integrated effort—something that makes me nervous just thinking about it. The success depends on many moving parts aligning perfectly, which, as we know, isn’t always the case. Still, the intention is clear: support the regional supply chain, create jobs—between 100 and 140—and, most importantly, challenge the Chinese monopoly.

The Broader Implications

Here’s what I want you to consider. This isn’t just a story about a plant in France. It’s about the strategic shifts in the global rare earth game. Europe, and France especially, are positioning themselves as key players. And the move by LCM signals a broader trend: the West’s recognition that independence from China isn’t optional anymore. It’s about securing the future of high-tech manufacturing, energy, and innovation.

So, why is a UK processor eyeing France? Because it has to. Because it can. And because the world is changing fast enough that staying still isn’t an option.

What do you think? Do you see more companies following LCM’s lead? Or are these just blips on the map? Comment! We read you. And don’t forget to check out other articles—you’ll find many interesting insights into what’s really happening behind the scenes.

Miles Corbin

Investor and financial advisor for 12 years. I like to open the eyes of my clients and here I intend to do so with all of you who read The Domain Blog. I like to be on the cutting edge of everything related to the finance industry, investing, and financial planning and management in general. My goal is always to eliminate any hint of “guru” promises and to take a serious approach to industry news.