USA Rare Earth (USAR) has acquired Brazilian rare earth mining company Serra Verde in a deal valued at about $2.8 billion. The acquisition was announced on Monday by both companies.
Serra Verde operates the Pela Ema mine in Minaçu, Goiás state. It is the only active ionic clay rare earth mine in Brazil and has been in production since 2024. The company is also the only producer outside Asia of the four most critical and valuable heavy rare earths: dysprosium, terbium, and yttrium. More than 90% of global rare earth extraction is done in China.
These materials are used to make permanent magnets for electric vehicles, wind turbines, robots, drones, high-efficiency air conditioners, as well as in semiconductors, defense, nuclear, and aerospace industries.
According to Serra Verde, the deal will create the largest global company in the rare earth sector. Production at the Goiás mine is currently in phase one and is still modest, but the company expects it to double by 2030.
“Serra Verde’s mining and processing operations will play a central role in establishing the first mine-to-magnet rare earth supply chain outside Asia, when combined with USAR’s mining and downstream capabilities,” the Serra Verde group said in a market statement.
The contract includes a 15-year supply agreement to a Special Purpose Vehicle (SPV) capitalized by several U.S. government agencies as well as private capital. The agreement covers 100% of Serra Verde’s phase one production with guaranteed minimum prices for magnetic rare earths.
“The supply agreement provides secure and predictable cash flows for Serra Verde, reducing risks, supporting investments, and backing its successful development,” USAR said in a note.
According to the announcement, the acquisition will create “a leading multinational rare earth company from mine to magnet, with eight operations in Brazil, the United States, France, and the United Kingdom, and active operational capabilities across the entire light and heavy rare earth supply chain, including mining, processing, separation, metallization, and magnet manufacturing.”
Ricardo Grossi, president of Serra Verde Pesquisa e Mineração and COO of the Serra Verde Group, said: “These milestones are a significant positive point for Brazil and demonstrate the country’s ability to play a leading role in developing global rare earth supply chains. The supply guarantees, as well as the combination with USAR, validate the quality of Serra Verde: our unique operation, our employees, and their commitment to responsible practices.”
The market reacted positively to the news. Around 3:30 p.m., USAR shares on the Nasdaq were up more than 8%. The acquisition retains the Brazilian company’s team, with two of its executives joining the USAR board: Sir Mick Davis and Thras Moraitis, respectively Chairman and CEO of the Serra Verde Group.
In several speeches, President Donald Trump has addressed the rare earth issue and criticized the world’s dependence on Chinese production, which has led to tensions with Beijing.
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