France and Japan Collaborate on Europe’s First Rare Earth Recycling Plant

France and Japan are collaborating to build Europe’s first large-scale rare earth recycling plant in Lacq, France, aiming to reduce dependency on China, which supplies 98% of Europe’s rare earths. The facility is expected to begin operations by the end of 2026 and produce significant amounts of critical elements for high-tech industries.

China’s dominance in rare metal supplies has raised alarm among global industries. In a recent report, the Central News Agency highlighted the partnership between France and Japan to establish Europe’s first large-scale rare earth recycling plant in Lacq, France. This facility is poised to become the largest producer of purified heavy rare earths in the Western world, with operations expected to begin by the end of 2026.

According to the report, automaker Stellantis has committed to being a customer of this ambitious project. Caremag, a subsidiary of Carester and spearheading the initiative, has successfully secured EUR 216 million in funding, with EUR 110 million provided by Japanese entities, including the Japan Organization for Metals and Energy Security (JOGMEC) and private company Iwatani. The French government has contributed EUR 106 million to the project.

This initiative aims to decrease Europe’s dependency on China, which currently supplies 98% of the region’s rare earth elements, as stated by EnergyNews. The Caremag facility is set to recycle 2,000 tonnes of magnets and refine 5,000 tonnes of mining concentrates annually. Notable outputs are expected to include 600 tonnes of Dysprosium and Terbium oxides, accounting for approximately 15% of global production, alongside 800 tonnes of Neodymium and Praseodymium oxides.

Rare earth elements and the permanent magnets derived from them are crucial for the electronics sector, with wide applications in electric vehicles, wind turbines, and robotics. The strategic significance of this project is underscored by its potential contribution to clean energy advancement and high-tech manufacturing, as emphasized by Central News Agency.

The collaboration between France and Japan to establish Europe’s first rare earth recycling plant represents a crucial step towards reducing dependency on Chinese supplies. With substantial funding and significant output projections, the facility in Lacq aims to enhance Europe’s position in the rare earth market and support the critical sectors such as clean energy and high-tech manufacturing. This initiative reaffirms the strategic importance of securing a stable supply chain for essential materials and furthering technological advancements.

Original Source: www.trendforce.com