Latham Advises USA Rare Earth in Carester Investment and Strategic Partnership in France

Latham & Watkins has advised USA Rare Earth, the magnet producer and vertically integrated rare earth and critical minerals supply chain company, on its agreement to invest in Carester, a leading and innovative French specialist in rare earth recycling and separation. USA Rare Earth will invest alongside InfraVia, with each party expected to hold approximately 12.5% equity interests in Carester.

The broader partnership provides USA Rare Earth and its subsidiary Less Common Metals (LCM) Europe the right to purchase some of Carester’s oxide output from its Caremag facility and access for USA Rare Earth to Carester engineering capabilities and related intellectual property for separation, processing, and recycling. Conversely Carester will have long-term access to heavy rare earth feedstock from the company’s round top deposit in Texas, which is expected to begin commercial operation in late 2028.

The Latham team was led by Paris corporate partner Pierre-Louis Cléro, together with Los Angeles partners Steven Stokdyk and David Zaheer, and Paris associate Morgane Chaloin, and New York associate Diego Guimaraes-Blandon. Advice was also provided on IP and commercial contract matters by Paris partner Jean-Luc Juhan, with New York partner Steven Betensky, London counsel Evelyne Girio, and London associate Daniel Chen; and New York associate Victoria Allen.