France has unveiled one of Europe’s most ambitious rare earth and permanent magnet strategies, signaling a dramatic shift in the continent’s industrial and geopolitical priorities. Presented in Lacq on May 5, the new national resilience plan positions France at the center of Europe’s effort to reduce dependence on Chinese-controlled critical mineral supply chains and rebuild strategic industrial capabilities.
The initiative represents a turning point in European industrial policy. Rare earth elements and permanent magnets are no longer treated as niche mining issues but as strategic resources essential for the future of energy, transportation, defense, and advanced manufacturing. French officials now view secure access to these materials as vital to industrial competitiveness and national security.
China’s Dominance Sparks Europe’s Strategic Response
At the heart of the French strategy lies growing concern over China’s overwhelming control of the rare earth market. More than 85% of global rare earth separation capacity remains concentrated in China, which also dominates refining, alloy production, and magnet manufacturing.
France’s new industrial roadmap seeks to reduce this dependence by building a resilient European rare earth supply chain capable of supporting key industries independently. Officials argue that without such action, Europe risks exposing its economy to geopolitical instability, export restrictions, and supply-chain disruptions.
Permanent magnets based on neodymium-iron-boron (NdFeB) technology are critical for modern industrial systems. They are used in electric vehicle motors, offshore wind turbines, robotics, consumer electronics, aerospace technologies, and military equipment. According to French projections, European demand for NdFeB magnets could reach between 36,000 and 45,000 tonnes annually by 2030.
Rare Earth Security Becomes a Strategic Priority
European governments are increasingly concerned about the fragility of global mineral supply chains. French officials warned that export controls, geopolitical tensions, and disruptions in strategic maritime routes could severely impact European industries dependent on critical raw materials.
As a result, rare earth security is now being treated as a matter of industrial sovereignty. France’s answer is to create a fully integrated domestic and European value chain covering refining, recycling, metallization, magnet manufacturing, financing, and procurement.
Major Investments in Rare Earth Refining
A central pillar of the strategy involves expanding rare earth refining capacity at Solvay’s La Rochelle facility and the CAREMAG project in Lacq. Together, these projects are expected to produce 3,800 tonnes of light rare earth oxides and 800 tonnes of heavy rare earth oxides annually by 2030.
This is particularly significant because Europe currently possesses almost no heavy rare earth refining capacity. French authorities estimate that by the end of the decade, France could supply 100% of Europe’s heavy rare earth requirements and approximately 25% of light rare earth demand for permanent magnet applications.
The CAREMAG project alone highlights the scale of state-backed industrial mobilization underway. The facility plans to produce more than 500 tonnes of dysprosium, 100 tonnes of terbium, and 800 tonnes of light rare earth materials annually, using both mined concentrates and recycled feedstock. The project carries an estimated investment value of €185 million, supported heavily by programs such as France Relance and France 2030.
International Alliances Reshape the Critical Minerals Market
Global partnerships are becoming increasingly important in the race to secure critical minerals. Japan’s JOGMEC and Iwatani Corporation have committed around €110 million to the CAREMAG project through equity investments and financing agreements.
These investments are accompanied by long-term supply contracts for heavy rare earth oxides destined for Japanese industry. The agreements signal the emergence of a broader alliance among democratic economies seeking alternatives to Chinese supply-chain dominance. France has also signed more than 20 bilateral cooperation agreements involving strategic minerals and rare earth development with countries such as Japan, South Korea, India, Norway, Canada, Brazil, South Africa, and Malaysia.
Rebuilding Europe’s Weak Metallization Sector
France is simultaneously targeting one of Europe’s weakest industrial segments: rare earth metallization. Less Common Metals plans to establish a metallization facility in Lacq capable of processing 1,350 tonnes annually and producing approximately 2,400 tonnes of magnetic alloys per year. That production capacity could eventually meet around 10% of total European demand, strengthening Europe’s downstream manufacturing base and reducing import dependence.
Recycling and Urban Mining Gain Strategic Importance
Recycling has emerged as a core component of France’s long-term strategy. Grenoble-based MagREEsource, a spin-off from CNRS research programs, has already launched a pilot production line using hydrogenation-based recycling technology to transform end-of-life magnets into recycled NdFeB magnets. The company aims to scale production to 500 tonnes annually by 2029 and eventually reach 1,000 tonnes by 2030.
French authorities estimate that Europe possessed around 5,000 tonnes of recoverable magnet stock in 2022, a figure that could increase to 15,000 tonnes by 2035. This creates the foundation for an emerging urban mining ecosystem, helping Europe reduce exposure to volatile global mining markets while advancing its circular economy goals.
France Expands Financial Support for Critical Minerals
To accelerate development, France is extending its green industry investment tax credit scheme through 2028 and simplifying regulations for rare earth projects. The France 2030 investment program is also expected to support roughly ten additional critical mineral projects before 2027.
Another major initiative is the state-backed InfraVia critical metals investment fund, which aims to mobilize €2 billion in capital, including €500 million from France 2030. The fund is investing both domestically and internationally to secure upstream mining access and strengthen Europe’s strategic position in global mineral markets. Investments have already been made in Australia’s Core Lithium and French rare earth company Carester.
Offshore Wind Procurement Rules Drive Industrial Change
One of the most groundbreaking aspects of France’s strategy involves direct intervention in industrial procurement policy. Under the future AO10 offshore wind framework, less than 50% of permanent magnets used in offshore wind projects may originate from the dominant supplier nation. Developers are also encouraged to include at least 25% European-made permanent magnets in project proposals. This marks one of Europe’s first major attempts to integrate industrial resilience criteria directly into renewable energy procurement policy.
France estimates that the AO10 offshore wind program alone could require nearly 8,000 tonnes of permanent magnets before 2040. Similar policies across Europe could create guaranteed long-term demand for European magnet manufacturers and improve the financial viability of domestic rare earth projects.
“Made in Europe” Standards Gain Momentum
France is also pushing for stricter “Made in Europe” requirements within future European Union legislation, including the proposed Industrial Accelerator Act and REsourceEU frameworks.
These policies could eventually reshape subsidy eligibility, sourcing rules, and industrial standards for electric vehicles, renewable energy infrastructure, and advanced manufacturing technologies across the European Union. The automotive sector has become a major focus. French authorities estimate that permanent magnets contribute around €200 in material value to every electric vehicle propulsion system. Companies seeking public funding under France 2030 may soon be required to submit formal supply diversification strategies for rare earths and magnets.
Europe’s Energy Transition Enters a New Phase
Beyond France itself, the strategy reflects a broader geopolitical transformation. During its G7 leadership initiatives, France elevated critical minerals, strategic metals, and supply-chain security into major international priorities.
The plan has evolved into far more than a national industrial roadmap. It is increasingly viewed as a blueprint for Europe’s response to the fragmentation of globalization and the growing weaponization of strategic supply chains. For Europe’s energy transition industries, the implications are enormous. Electric vehicle manufacturers, offshore wind developers, defense contractors, and advanced technology firms are entering an era where secure access to rare earths and permanent magnets may become as strategically essential as semiconductors, electricity, or hydrocarbons.
