France unveiled a national resilience plan for rare earths and permanent magnets at Lacq on May 5. The program places France at the center of Europe’s effort to reduce dependence on Chinese-controlled critical mineral supply chains and rebuild strategic industrial capabilities. French officials also linked secure material access to industrial competitiveness and national security.
The strategy targets rare earth elements and permanent magnets as inputs for energy, transportation, defense, and advanced manufacturing. It also frames secure supply as relevant to industrial stability amid concerns over global supply-chain fragility. Permanent magnets based on neodymium-iron-boron (NdFeB) are cited as used in electric vehicle motors, offshore wind turbines, robotics, consumer electronics, aerospace technologies, and military equipment.
China concentration drives European demand planning
French planning highlights China’s role across the rare earth value chain, with more than 85% of global rare earth separation capacity concentrated in China. China is also described as dominating refining, alloy production, and magnet manufacturing. France’s roadmap aims to reduce dependence by building a resilient European supply chain supporting key industries independently.
French projections place European NdFeB magnet demand between 36,000 and 45,000 tonnes annually by 2030. Officials warned that export controls, geopolitical tensions, and disruptions in strategic maritime routes could affect European industries reliant on critical raw materials. The plan therefore treats rare earth security as an industrial sovereignty issue.
Refining expansion at La Rochelle and Lacq
A central element of the strategy is increasing refining capacity at Solvay’s La Rochelle facility and through the CAREMAG project in Lacq. Together, the two initiatives are expected to produce 3,800 tonnes of light rare earth oxides and 800 tonnes of heavy rare earth oxides annually by 2030. French authorities said Europe currently has almost no heavy rare earth refining capacity.
By the end of the decade, French estimates indicate France could supply 100% of Europe’s heavy rare earth requirements and about 25% of light rare earth demand for permanent magnet applications. The CAREMAG project is designed to produce more than 500 tonnes of dysprosium, 100 tonnes of terbium, and 800 tonnes of light rare earth materials each year. It is planned to use both mined concentrates and recycled feedstock.
The CAREMAG project has an estimated investment value of €185 million. Funding support is described as heavily backed by France Relance and France 2030 programs. The same project is also positioned within a broader state-backed industrial mobilization effort.
CAREMA G financing commitments from Japan
International partnerships are included in the strategy’s implementation approach for critical minerals. Japan’s JOGMEC and Iwatani Corporation have committed around €110 million to the CAREMAG project through equity investments and financing agreements. The arrangements are accompanied by long-term supply contracts for heavy rare earth oxides for Japanese industry.
France also reported signing more than 20 bilateral cooperation agreements covering strategic minerals and rare earth development. The countries listed include Japan, South Korea, India, Norway, Canada, Brazil, South Africa, and Malaysia. These agreements are described as part of efforts to diversify access beyond Chinese-controlled supply chains.
Metallization facility planned in Lacq
Alongside refining capacity, France is targeting rare earth metallization as one of Europe’s weaker industrial segments. Less Common Metals plans to establish a metallization facility in Lacq able to process 1,350 tonnes annually. The project is expected to produce approximately 2,400 tonnes of magnetic alloys per year.
French statements say that output could eventually meet around 10% of total European demand. The initiative is presented as a way to strengthen downstream manufacturing while reducing import dependence for magnetic alloy inputs used in permanent magnet production.
Hydrogenation recycling targets NdFeB recovery
Recycling is included as a long-term component of the strategy through an emerging “urban mining” approach. Grenoble-based MagREEsource launched a pilot production line using hydrogenation-based recycling technology to convert end-of-life magnets into recycled NdFeB magnets. The company plans to scale production to 500 tonnes annually by 2029 and reach 1,000 tonnes by 2030.
French authorities estimate Europe had around 5,000 tonnes of recoverable magnet stock in 2022. That figure is projected to rise to 15,000 tonnes by 2035. The recycling pathway is described as supporting circular economy goals alongside reducing exposure to volatile global mining markets.
Tax credits, InfraVia fund support critical minerals
France said it will extend its green industry investment tax credit scheme through 2028 while simplifying regulations for rare earth projects. The France 2030 investment program is expected to support roughly ten additional critical mineral projects before 2027. These measures are intended to accelerate development across upstream and processing activities.
A separate initiative is the state-backed InfraVia critical metals investment fund targeting €2 billion in capital mobilisation. Of that amount, €500 million is attributed to France 2030 funding support. The fund invests domestically and internationally with the goal of securing upstream mining access and strengthening Europe’s position in global mineral markets.
InfraVia investments already include Australia’s Core Lithium and French rare earth company Carester. These examples are cited as part of the fund’s approach to securing upstream exposure within the critical metals sector.
Offshore wind procurement rules for European magnet content
The strategy also includes procurement policy intervention tied to offshore wind deployment under the future AO10 framework. Under AO10 rules described by France, less than 50% of permanent magnets used in offshore wind projects may originate from the dominant supplier nation. Developers are encouraged to include at least 25% European-made permanent magnets in project proposals.
France estimates AO10 alone could require nearly 8,000 tonnes of permanent magnets before 2040. Similar policies across Europe are described as creating long-term demand for European magnet manufacturers while improving the financial viability of domestic rare earth projects supplying those magnets.
EU “Made in Europe” requirements linked to funding eligibility
France is pushing for stricter “Made in Europe” requirements within future EU legislation under frameworks including the proposed Industrial Accelerator Act and REsourceEU. French officials said these policies could reshape subsidy eligibility, sourcing rules, and industrial standards across electric vehicles, renewable energy infrastructure, and advanced manufacturing technologies throughout the EU.
The automotive sector is highlighted as a focus area within these standards discussions. French authorities estimate permanent magnets contribute around €200 in material value to every electric vehicle propulsion system. Companies seeking public funding under France 2030 may be required to submit formal supply diversification strategies for rare earths and magnets.
G7 leadership elevates critical minerals priorities
The plan is also tied to international coordination described through France’s G7 leadership initiatives. During those initiatives, France elevated critical minerals, strategic metals, and supply-chain security into major international priorities alongside national industrial measures.
The strategy is described as extending beyond a national roadmap into a broader response framework for Europe’s energy transition industries. Electric vehicle manufacturers, offshore wind developers, defense contractors, and advanced technology firms are referenced as entering an environment where secure access to rare earths and permanent magnets may be treated as strategically essential alongside semiconductors, electricity, or hydrocarbons.
