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 company announced. The deal includes $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 and customary closing conditions.
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: neodymium, praseodymium, dysprosium, and terbium. These elements are critical for permanent magnets used in electric vehicles, wind turbines, defense systems, and other advanced technologies.
By integrating Serra Verde's assets, USA Rare Earth aims to become a fully integrated platform spanning mining through magnet production, strengthening supply chain security for Western nations. The combined company will own operations across the United States, United Kingdom, France, and Brazil, including the Round Top deposit in Texas, the Pela Ema mine in Brazil, and magnet manufacturing capacity in Stillwater, Oklahoma.
USA Rare Earth already owns Less Common Metals (LCM), one of the world's leading producers of rare earth metals and alloys, and is developing magnet manufacturing capacity. The acquisition of Serra Verde adds a producing mine with a long-life resource, providing a secure source of raw materials for downstream processing.
The transaction underscores the growing strategic importance of rare earth elements, which are essential for the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare, and industrial sectors. With China dominating global rare earth production, the deal represents a significant step toward diversifying supply and reducing dependence on a single country.
For more information on USA Rare Earth, visit https://www.usare.com/. To view the full press release, see https://ibn.fm/K46Iw.
