USA Rare Earth, Inc. (NASDAQ: USAR) has entered a definitive agreement to acquire 100% of Serra Verde Group in a transaction valued at approximately $2.8 billion, marking a significant step toward establishing a secure, Western-aligned rare earth supply chain. The deal, expected to close in the third quarter of 2026 subject to regulatory approvals, consists of $300 million in cash and 126.8 million shares of common stock.
The acquisition adds the Pela Ema rare earth mine and processing facility in Brazil, which is currently the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths. This positions the combined company as a fully integrated platform spanning mining through magnet production, strengthening supply chain security and supporting long-term growth in sectors such as aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare, and industrial.
USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain across the United States, United Kingdom, France, and Brazil. Through its ownership of Less Common Metals (LCM), one of the world's leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil, and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production, and neodymium magnet manufacturing.
This acquisition is important because it addresses a critical vulnerability in the global supply chain. Currently, China dominates rare earth production, and the United States and its allies have been seeking to diversify sources. The Pela Ema mine is a key asset because it can produce all four magnetic rare earths—neodymium, praseodymium, dysprosium, and terbium—which are essential for permanent magnets used in electric vehicles, wind turbines, and advanced defense systems.
For more details on the announcement, visit https://ibn.fm/K46Iw. Information about USA Rare Earth can be found at https://www.usare.com/.
The transaction underscores the growing importance of securing rare earth supply chains for national security and economic competitiveness. By controlling the entire value chain from mining to magnet production, the combined entity aims to reduce reliance on foreign suppliers and support the growth of clean energy and advanced manufacturing industries.
