USA Rare Earth has announced plans to acquire Brazil-based Serra Verde Group in a transaction valued at approximately $2.8 billion, combining cash and newly issued shares. The deal is expected to close in the third quarter of 2026, subject to regulatory approvals.
At the centre of the transaction is Serra Verde’s Pela Ema operation in Minaçu, Goiás, currently the only producing rare earth mine outside Asia capable of supplying all four key magnetic elements at scale: neodymium, praseodymium, dysprosium and terbium. These materials are essential for permanent magnets used in electric vehicles, wind turbines, advanced electronics and defence technologies.
The acquisition will combine Serra Verde’s upstream production capabilities with USA Rare Earth’s downstream processing and magnet manufacturing infrastructure in the United States, contributing to the development of a more integrated rare earth supply chain outside Asia.
According to USA Rare Earth CEO Barbara Humpton, the transaction strengthens access to critical materials and supports efforts to diversify global supply chains at a time of rapidly increasing demand.
The project has already attracted significant international financial backing. Serra Verde previously secured approximately $565 million in financing from the U.S. International Development Finance Corporation (DFC) to support the expansion of its operations.
In addition, USA Rare Earth has arranged a broader financing structure, bringing total committed capital linked to the project to over $2 billion, reflecting the strategic importance of rare earths in global industrial and energy systems.
A key component of the transaction is a 15-year offtake agreement covering 100% of initial production, providing long-term supply visibility for critical materials used in high-performance magnet applications.
Serra Verde’s production is expected to scale to approximately 6,000–6,500 tonnes of rare earth oxides annually by 2027, positioning the project as a major contributor to global supply outside Asia.
The deal takes place in a context of intensifying global competition for rare earths, where securing reliable and diversified supply sources has become a strategic priority.
China continues to dominate the sector, accounting for a significant share of both global production and processing capacity. As a result, projects like Serra Verde are gaining importance as alternative supply sources.
Brazil, which holds one of the world’s largest rare earth resource bases, is increasingly attracting international investment and attention. Ongoing exploration, financing initiatives and policy discussions are supporting the country’s positioning within global critical minerals supply chains.
Alongside its strategic importance, the transaction has also contributed to a broader industry discussion around how value is captured across the rare earth supply chain.
While extraction will take place in Brazil, downstream stages such as separation, refining and magnet manufacturing are expected to be carried out in the United States, where USA Rare Earth already has established capabilities.
This model reflects current industrial realities, where processing capacity remains concentrated outside Brazil. At the same time, it has reinforced ongoing conversations among policymakers and industry stakeholders about the importance of developing domestic processing and advanced manufacturing capabilities over the long term.
In parallel, Brazilian authorities have signalled their intention to encourage greater local value addition in future projects, including through policies aimed at strengthening industrial development and technology transfer.
As the transaction moves through regulatory review, it is expected to play an important role in shaping discussions around investment, industrial strategy and supply chain development in Brazil’s rare earth sector.
The deal highlights both the opportunities associated with Brazil’s resource base and the importance of continued progress in building a more integrated and competitive critical minerals industry.
As global supply chains evolve and investments increasingly target both upstream and downstream segments, discussions around financing, value creation and industrial development are becoming more central to the sector.
These themes will be explored at the Brazil Critical Minerals Summit 2026, taking place on 17–18 June in Belo Horizonte, where industry leaders, investors and policymakers will assess Brazil’s role in the next phase of global critical minerals development.
Sources:
- CNBC: https://www.cnbc.com/2026/04/20/usa-rare-earth-serra-verde-minerals-china.html
- RioTimesOnline: https://www.riotimesonline.com/usa-rare-earth-serra-verde-2-8-billion-acquisition-goias/
- Minera Brasil: https://minerabrasil.com.br/usa-rare-earth-compra-serra-verde-por-us-28-bilhoes/2026/04/20/
