Prime Highlight
- USA Rare Earth has agreed to acquire Brazil-based Serra Verde Group in a $2.8 billion cash-and-stock deal, strengthening its access to critical rare earth minerals.
- The acquisition gives the company control of the Pela Ema mine in Brazil, a major source of heavy rare earth elements outside Asia.
Key Facts
- Under the agreement, USA Rare Earth will pay $300 million in cash and issue new shares as part of the transaction.
- Serra Verde plans to raise output at the Pela Ema project to 6,400 metric tons of rare earth oxides annually by the end of 2027.
Background
USA Rare Earth has agreed to buy Brazil-based Serra Verde Group in a deal valued at about $2.8 billion, strengthening its access to critical rare earth minerals used in clean energy, defence and advanced technology sectors. The transaction combines cash and stock and is expected to close in the third quarter, subject to approvals.
The acquisition gives the company control of Serra Verde’s Pela Ema mine in Brazil, one of the few large-scale sources of heavy rare earth elements outside Asia. The mine produces key materials such as dysprosium, terbium, neodymium and praseodymium, which are used in electric vehicles, wind turbines, military equipment and electronic products.
Under the deal terms, USA Rare Earth will pay $300 million in cash and issue new shares as part of the transaction. The company said the acquisition will strengthen its global supply chain by linking mining operations in Brazil with its existing projects in Texas, Oklahoma, the United Kingdom and France.
Serra Verde started commercial production at the Pela Ema project in 2024 and plans to raise output to 6,400 metric tons of rare earth oxides a year by the end of 2027. At full capacity, the site is expected to contribute a major share of heavy rare earth production outside China.
The deal also has strong financial support. Serra Verde recently secured $565 million in funding and signed a long-term offtake agreement for its magnet metal production, giving better price visibility and steady demand support.
The acquisition is expected to strengthen USA Rare Earth’s position as a major supplier of critical minerals outside Asia.
