USA Rare Earth Acquires Serra Verde Group for $2.8 Billion

On April 20, 2026, USA Rare Earth entered a definitive agreement to acquire the Serra Verde Group for approximately $2.8 billion, utilizing $300 million in cash and the issuance of over 126 million shares. The deal includes Brazil's Pela Ema mine and processing plant in Goiás, which is the only producer outside Asia capable of supplying all four key magnetic rare earths—neodymium, praseodymium, dysprosium, and terbium—at scale.

Backed by the Trump administration, the acquisition seeks to break global dependency on China, which controls over 85 percent of rare earth processing. The transaction is supported by a $1.6 billion investment from the U.S. Department of Commerce and a $565 million financing package from the U.S. International Development Finance Corporation. Additionally, a 15-year offtake agreement with U.S. government agencies and private sources provides price floors to ensure stability.

USA Rare Earth intends to integrate Serra Verde's mining operations with its investment in the Carester processing firm to create a fully integrated supply chain covering mining, separation, metallization, and magnet manufacturing. The company's stock rose 13.18% following the announcement. The deal is expected to close in the third quarter of 2026, with the Pela Ema facility projected to produce 6,400 tonnes of total rare earth oxides annually by the end of 2027.