Brazilian Rare Earths (ASX: BRE) Jumps 16% After Deal with Carester

Brazilian Rare Earths (ASX: BRE) Jumps 16% After Securing 10-Year Offtake Deal with Global Processing Leader Carester

It has been a strong week for Brazilian Rare Earths (ASX: BRE), with the stock climbing 16 percent after the company announced a major 10-year offtake agreement that could reshape its growth trajectory. The deal, struck with Carester SAS, one of the world’s leading rare earth processing specialists, marks a significant milestone for the company’s long-term vision.

Under the agreement, Carester will purchase heavy rare earth feedstock from BRE to support production of around 150 tonnes per year of ore that contains dysprosium and terbium oxides two of the most valuable and strategically critical elements used in electric vehicles, wind turbines, and defence systems.

For investors, this partnership provides more than just a sales contract. It connects BRE directly into the global supply chain at a time when Western nations are racing to secure non-Chinese sources of critical minerals. With a world-class resource in Brazil and a new European alliance, the company may be positioning itself at the center of a fast-evolving strategic opportunity.

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Brazilian Rare Earths Strengthens Path to Production with Carester Partnership and Access to Major European Facility

This agreement represents a significant step forward for Brazilian Rare Earths (BRE) as it moves to monetise its Monte Alto Rare Earths Project, one of the highest-grade heavy rare earth deposits in the world. The partnership directly connects BRE to the global rare earth supply chain and secures access to one of the largest upcoming heavy rare earth separation facilities in the Western world, the Caremag plant in Lacq, France.

Backed by the French Government, JOGMEC, and Iwatani Corporation, the Caremag facility is expected to commence operations in late 2026, with planned production of approximately 600 tonnes per annum (tpa) of dysprosium and terbium oxides, equal to around 15 percent of global supply.

In parallel, Brazilian Rare Earths is advancing development of its own integrated rare earth refinery in Brazil. The partnership with Carester meaningfully reduces development and execution risk by leveraging Carester’s downstream processing expertise. Under the engineering and technical services agreement, which runs through to 2031, Carester will assist with the design, construction, and commissioning of BRE’s refinery, accelerating the company’s transformation from an explorer into a fully integrated rare earth producer.

The Investors’ Takeaway for BRE

While the deal significantly de-risks Brazilian Rare Earths‘ downstream development, key uncertainties remain around project financing, permitting, and the successful commissioning of both the Camaçari refinery and Caremag plant. Commodity price volatility in rare earths, especially in DyTb, could also affect long-term revenue stability. Moreover, the execution of such complex engineering projects carries operational and capital cost risks.