Europe’s drive to secure critical mineral supply chains is moving increasingly from policy to industrial investment. Developments involving rare earths, copper, cobalt, nickel and polymetallic deposits show how Europe is seeking to reduce dependence on concentrated overseas processing while expanding domestic refining and manufacturing.
US and French Investment Strengthen Carester
French separation-technology company Carester is adding strategic shareholders to its Caremag rare-earth processing project at Lacq in south-western France. USA Rare Earth has agreed to acquire around 13.6% of Carester, while French investment manager InfraVia, through its Critical Metals Fund, will take a similar stake. The investment value was not disclosed, with funding expected in the third quarter of 2026. The transaction builds on €216 million already secured for Caremag, including €106 million in French government support and €110 million from Japanese partners.
Caremag is expected to begin commissioning in the fourth quarter of 2026. At full capacity, it will recycle 2,000 tonnes of permanent magnets and refine 5,000 tonnes of mined concentrates annually. Planned production includes 800 tonnes of neodymium-praseodymium oxide, 500 tonnes of dysprosium oxide and 100 tonnes of terbium oxide each year. Dysprosium and terbium are particularly important for high-performance permanent magnets used in electric vehicles, wind turbines, defence systems and industrial equipment. USA Rare Earth will gain rights to purchase part of Caremag’s output, while Carester will gain potential access to feedstock from projects in Brazil and the United States.
Lacq Targets a Wider Rare-Earth Supply Chain
USA Rare Earth is also developing a 3,750-tonne-per-year metal and alloy plant through LCM Europe at Lacq. The facility is intended to convert rare-earth oxides into metals and alloys needed by magnet manufacturers. France has offered support covering up to 45% of eligible expenditure, capped at €130 million, while Bpifrance Assurance Export could consider a guarantee covering 50% of commercial debt financing for project capital expenditure.
The strategy is designed to connect rare-earth separation with downstream metal and alloy production. A future magnet plant could eventually complete the chain, although no financed construction decision has been announced. Caremag also has a 10-year agreement with Brazilian Rare Earths for up to 150 tonnes a year of contained dysprosium and terbium oxides. Japanese partners are expected to take approximately 250 tonnes of dysprosium and 45 tonnes of terbium annually.
EU Restrictions Tighten Russian Copper and Cobalt Rules
Europe’s critical-minerals strategy is also being shaped by sanctions. New restrictions on Russian-origin copper and cobalt reached an operational milestone on 25 July 2026.
Russian material can be placed on warrant in EU-based LME warehouses only where evidence shows it entered the EU before the relevant deadline. The rules form part of wider sanctions covering several Russian metals and raw materials. The immediate effect on LME inventories is expected to be limited, but traders and manufacturers face greater requirements to prove metal origin, import dates and supply-chain history. The measures could strengthen demand for traceable non-Russian copper and cobalt and increase the importance of European refining and recycling.
Spanish and Welsh Projects Continue Development
Technology Minerals has extended its St Patrick exploration permit in Asturias, Spain, until 21 June 2028. The licence covers the historic Aramo copper-cobalt-nickel mine. Previous selective samples returned grades of up to 28% copper, 1.88% cobalt and 1.68% nickel, although these results do not establish the average grade or economic size of the deposit.
A planned underground drilling programme still requires approval from the Asturian mining authorities. Meanwhile, Anglesey Mining is advancing geological and geometallurgical work at the Parys Mountain project in Wales, which contains copper, zinc, lead, silver and gold.
The company is reassessing the project’s economics as processing and construction costs have changed since its 2021 preliminary economic assessment. Geometallurgical work will help determine how different ore types can be processed efficiently and whether recoveries and concentrate quality support a viable development plan.
Europe’s Critical Minerals Strategy Moves Downstream
The developments underline a broader shift in Europe’s approach to critical minerals. Securing mine supply is no longer enough. Refining, recycling, processing technology and downstream manufacturing are becoming equally important. Caremag represents the more integrated model, combining strategic investment, public support, feedstock agreements and downstream production. Exploration projects such as Aramo and Parys Mountain remain further from production and still face technical, permitting and financing challenges. For Europe, the key test will be whether these projects can develop into competitive and resilient supply chains rather than remaining dependent on long-term subsidies or protection.
