USA Rare Earth, Inc. ( USAR ) shares are moving higher on Tuesday after the company announced a strategic expansion into the European market. 

Through its subsidiary, Less Common Metals (LCM), USAR plans to develop a high-capacity metal and alloy production plant in Lacq, France, capable of producing 3,750 metric tons per annum.

USAR stock is climbing. See the chart and price action here. 

Strategic Support From The French Government

The project has received substantial backing from the French government through the C3IV program. The support package includes:

Direct Tax Credits: Up to 45% of all eligible equipment costs.

Real Estate Financing: Support totaling up to $152 million.

Workforce Development: Assistance with hiring initiatives and specialized training programs to cultivate local talent for the new facility.

Rare Earth Supply Chain

The new facility is designed to work in tandem with the existing industrial ecosystem in Lacq and will be co-located with Carester SAS's Caremag oxide processing facility, which is currently on track to begin operations in late 2026. 

By integrating these two operations, USAR is establishing a full-scale platform for rare-earth processing and metal production in Europe and strengthening the transatlantic supply chain.

“The development of an integrated rare earth processing and metal-making platform in France enhances USAR’s integrated rare earth value chain, to the benefit of the United States and our allies,” said Barbara Humpton, CEO of USAR. 

“We are proud to establish Europe’s first metal-making platform, which will accelerate the realization of a secure, sustainable transatlantic rare earth value chain," she added. 

USAR Price Action: USA Rare Earth ( USAR ) shares have gained more than 55% in January, buoyed by regulatory support for the critical minerals sector. USAR stock was up 6.95% at $18.92 on Tuesday, according to data from Benzinga Pro. 

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