USA Rare Earth completes $2.8 billion acquisition of Brazil's Serra Verde

USA Rare Earth has completed its $2.8 billion acquisition of the Serra Verde Group, which operates the only scaled producer of core rare-earth minerals in the Western Hemisphere. The Serra Verde mine, located in Minaçu, Brazil, produces dysprosium, neodymium, praseodymium, and terbium—minerals essential for defense, artificial intelligence, and energy transition technologies.

The deal is supported by the United States government, which has entered into a $1.6 billion financing and purchasing agreement to assist the acquisition. Under this arrangement, the U.S. government is expected to receive the production from the Minaçu mine as it scales toward a target of 4,000 annual tons of rare-earth oxides by the end of 2026.

This move aligns with strategic efforts to build an integrated supply chain for critical minerals outside of Asia, reducing reliance on Chinese resources. While Brazil recently passed legislation creating a National Policy for Critical and Strategic Minerals, the acquisition is expected to proceed without retroactive regulatory hurdles, though the Brazilian federal government continues to review the strategic nature of these underground resources.