USA Rare Earth (USAR) agreed to acquire Brazilian producer Serra Verde Group for approximately $2.8 billion. The transaction includes a $300 million cash payment. USAR will also issue 126.8 million new shares to fund the deal.
The acquisition integrates USAR’s processing capabilities with the Pela Ema mine. This facility is the only scaled producer outside Asia capable of supplying all four key magnetic rare earth elements.
This deal creates a fully integrated mine-to-magnet supply chain. The strategy aims to reduce Western reliance on Chinese critical mineral exports.
Serra Verde maintains a 15-year offtake agreement with a U.S. government-backed entity. This agreement includes guaranteed price floors for certain elements.
The transaction is expected to close in the third quarter of 2026. Completion remains subject to regulatory approval from Brazil’s antitrust agency.