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USA Rare Earth announced Monday it plans to invest more than 175 million euros ($204.1 million) through 2030 to expand its metal, alloy, and magnet-making operations in France, the company said. The U.S.-based rare earths firm said the investment aligns with agreements it reached with the U.S. Commerce Department as Washington seeks alternative sources of critical minerals outside China.
The U.S. government has made securing rare-earth supplies and domestic processing capacity a priority in its push to reduce reliance on China, which dominates global rare-earth mining and refining. Rare earth elements are essential components in defense systems, electronics, electric vehicles, and renewable-energy technologies.
USA Rare Earth said the French government could offer financial support and debt guarantees to support the expansion. The company said the new investments could create more than 300 new jobs, building on a rare-earth metal and alloy production facility it has previously established in France.
The announcement adds to a series of U.S. efforts to diversify critical mineral supply chains through partnerships with allied nations and direct government investment in rare-earth processing.