USA Rare Earth to Acquire Serra Verde in $2.8B Deal

April 21, 2026: USA Rare Earth has agreed to acquire Serra Verde in a deal valued at approximately $2.8 billion, combining cash and stock, as the company moves to expand its presence in the critical minerals sector outside Asia.

The transaction includes $300 million in cash and the issuance of 126.849 million new shares of USA Rare Earth common stock. Based on a share price of $19.95 as of April 17, the equity value of the deal is estimated at $2.8 billion.

The acquisition is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions. Financial advisors on the deal include Moelis & Company for USA Rare Earth and Goldman Sachs & Co for Serra Verde.

The agreement represents a major development for USA Rare Earth, positioning it among the few companies with integrated access to both mining and processing capabilities in the rare earths industry.

Strategic Asset: Pela Ema Mine

The acquisition gives USA Rare Earth full ownership of the Pela Ema rare earth mine and processing facility located in Goiás, Brazil. The asset began production in 2024 and is fully permitted, making it one of the most advanced rare earth operations outside Asia.

Pela Ema is notable for containing all four key magnetic rare earth elements—neodymium, praseodymium, dysprosium, and terbium—along with yttrium. These materials are essential for technologies such as electric vehicles, renewable energy systems, and advanced electronics.

The mine is currently expected to produce approximately 6,400 metric tonnes of total rare earth oxides annually, contributing significantly to non-Asian supply capacity.

Serra Verde is projected to reach an annualised EBITDA run rate of between $550 million and $650 million by the end of 2027, reflecting strong demand for rare earth materials and scaling production capacity.

The company previously secured a $565 million financing package from the US International Development Finance Corporation (DFC) to support expansion initiatives. In addition, it holds a 15-year offtake agreement covering 100% of Phase One production of key rare earth elements, backed by a special purpose vehicle funded by US government-linked entities and private investors.

This combination of financing and long-term supply agreements provides visibility on revenue streams and supports future growth in production and processing capabilities.

Supply Chain and Market Context

The acquisition comes amid increasing efforts by Western economies to diversify rare earth supply chains. Currently, China dominates the sector, controlling nearly 60% of global rare earth mining and about 85% of processing capacity.

Serra Verde is expected to account for more than 50% of the non-China supply of heavy rare earth elements by 2027, positioning the combined entity as a key contributor to supply diversification.

USA Rare Earth is developing a vertically integrated value chain spanning the United States, the United Kingdom, France, and Brazil, covering mining, processing, and magnet manufacturing.

The transaction aligns with broader policy initiatives aimed at strengthening critical mineral supply chains, particularly in sectors linked to energy transition and advanced manufacturing.

The addition of Serra Verde’s operations enhances USA Rare Earth’s ability to supply materials required for electric mobility, defence applications, and clean energy technologies. The Pela Ema facility also contributes downstream capabilities, including processing, separation, and metallisation.

The deal underscores growing competition for control of rare earth resources as governments and industries seek reliable sources of supply amid geopolitical tensions and rising demand.

According to the companies, the combined operations will support long-term supply stability and enable expansion across multiple stages of the rare earth value chain, although completion remains subject to regulatory clearance.