USA Rare Earth to acquire Brazil's Serra Verde in US$ 2.8 billion deal

The United States is significantly increasing its involvement in Brazil’s rare earths sector to secure supply chains for critical technologies. USA Rare Earth is finalizing a deal to acquire the Serra Verde Group, which operates the Pela Ema mine in Goiás. The acquisition is valued at approximately US$ 2.8 billion and is supported by substantial US government financing, including a US$ 750 million investment and additional offtake support.

Serra Verde is currently Brazil’s only large-scale commercial rare earths operation, producing essential elements like neodymium, praseodymium, dysprosium, and terbium, which are vital for electric vehicle motors and wind turbines. This move is seen as a strategic effort by Washington to reduce reliance on Chinese mineral exports.

Domestically, Brazil’s Minister of Mines and Energy, Alexandre Silveira, has expressed confidence that Vale, the country’s largest miner, will incorporate critical minerals like rare earths into its strategic planning. This comes amid growing government pressure to expand beyond traditional commodities like iron ore to foster industrial re-development through the energy transition.