The French government plans to increase its stake in mining company Eramet to 49 percent, becoming the group’s largest shareholder in an effort to stabilize its finances and secure access to critical mineral supplies. The move, announced ahead of a €500 million capital increase expected in the fourth quarter of this year, aims to support Eramet amid financial challenges and growing strategic concerns over mineral supply chains.

Currently holding 27 percent of Eramet’s shares, the French state will subscribe to its full allotment during the capital raising and acquire share rights from the Duval family, which owns 37 percent of the company. This arrangement will dilute the Duval family’s position under an agreement between the two major investors.

Sources familiar with the negotiations indicated that the government’s offer prevailed over bids from other potential investors, including at least one metals and mining industrial group and the Orion Critical Mineral Consortium, a fund backed by the United States and an Abu Dhabi sovereign wealth fund. These interests reportedly were deemed less suitable than the French state’s proposal, with the speed of capital injection and strategic national interests playing key roles in the decision.

Eramet operates nickel mines in Indonesia and holds significant historic concessions in New Caledonia, a French territory. The group also produces lithium, manganese, and mineral sands across Argentina, Gabon, Senegal, and the United States. These operations come at a time when global governments are intensifying efforts to secure supplies of critical minerals and reduce dependence on China, which currently dominates the processing and extraction of many of these resources.

The company has recently faced a series of setbacks, including a substantial reduction in its nickel mining quota in Indonesia and declining prices for certain minerals. After reporting a loss in 2025, Eramet has pursued asset sales and outlined the planned capital increase earlier this year as necessary to address a “deteriorated financial situation.”

France’s economy ministry described the capital raise as essential to restoring Eramet’s financial stability and underscored the government's commitment to safeguarding sovereign supplies of critical materials for both national and European industries. Finance Minister Roland Lescure emphasized that “Eramet is a strategic asset for France and Europe.”

While Eramet has indicated that other investors might join later, sources familiar with the matter suggest this is unlikely in the near term following the government's increased stake. The capital injection is viewed as a critical step to ensure the company’s viability and enhance France’s role in the strategic mineral sector.