USA Rare Earth to Acquire Serra Verde in $2.8 Billion Deal, Creating Global Rare Earth Supply Platform
USA Rare Earth's acquisition of Serra Verde for $2.8 billion positions the combined company as a fully integrated rare earth platform with the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths, strengthening Western supply chain security.
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. The deal consists of $300 million in cash and 126.8 million shares of common stock, with closing expected in the third quarter of 2026 subject to regulatory approvals.
The acquisition adds the Pela Ema rare earth mine and processing facility in Brazil to USA Rare Earth's portfolio. This facility is currently the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths essential for modern technologies. The transaction positions the combined company as a fully integrated platform spanning mining through magnet production.
This strategic move strengthens supply chain security for Western nations by creating a diversified source of critical materials. The combined entity will operate across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to multiple sectors including aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial applications.
The company's existing operations include ownership of Less Common Metals (LCM), one of the world's leading producers of rare earth metals and alloys, development of magnet manufacturing capacity in Stillwater, Oklahoma, and the Round Top deposit in Texas. With the addition of the Brazilian operations, USA Rare Earth creates a geographically diversified platform that reduces dependence on Asian supply chains.
For more information about USA Rare Earth, visit https://www.usare.com/. The full press release detailing this transaction can be viewed at https://ibn.fm/K46Iw.