USA Rare Earth to Acquire Brazil’s Serra Verde in $2.8 Billion Deal

USA Rare Earth said on April 20 that it has agreed to acquire Brazil-based Serra Verde Group in a deal valued at approximately $2.8 billion, a significant move to expand production of rare-earth elements outside Asia.

The company said it will purchase 100 percent of Serra Verde through a combination of $300 million in cash and 126.849 million shares of newly issued stock.

Based on USA Rare Earth’s closing share price of $19.95 on April 17, the transaction implies an equity value of about $2.8 billion for Serra Verde.

The deal is expected to close in the third quarter of 2026.

Barbara Humpton, CEO of USA Rare Earth, which is based in Stillwater, Oklahoma, described the acquisition as a step toward a global rare earth platform.

She said that Serra Verde’s Pela Ema mine is “a one-of-a-kind asset and the only producer outside Asia capable of supplying all four magnetic rare earths at scale.”

Humpton also pointed to Serra Verde’s existing agreements, noting that its importance is underscored by a 15-year offtake agreement backed by U.S. government-linked financing and private capital, covering all of its Phase 1 production of key materials such as neodymium, praseodymium, dysprosium, and terbium.

Rare earths are minerals critical for modern technologies, including electric vehicles, wind turbines, semiconductors, and defense systems. In particular, so-called heavy rare earths such as dysprosium and terbium are essential for producing high-performance magnets used in advanced equipment.

Currently, much of the world’s supply and processing capacity is in China, according to the International Energy Agency.

“Rare earths represent a strategic nexus where national and energy security, and technological supremacy, converge,” Serra Verde CEO Thras Moraitis said in the April 20 statement. “The Western rare earth sector stands at a critical inflection point, as governments and strategic industries urgently seek reliable sources of critical rare earths—particularly scarce heavy rare earths.”

By combining Serra Verde’s mining operations with USA Rare Earth’s processing and magnet-making capabilities, Humpton said, the company aims to create “a fully integrated platform” to support global supply security.

Financial Impact

Serra Verde operates the Pela Ema rare earth mine and processing facility in Goiás, Brazil, which began production in 2024 after more than $1.1 billion in investment.

The company focuses on ionic clay deposits, known for producing heavy rare-earth elements.

According to the April 20 statement, Serra Verde is expected to produce about 6,400 metric tons of total rare-earth oxides annually once it reaches full Phase 1 capacity by the end of 2027.

The company has also secured a $565 million financing package from the U.S. International Development Finance Corp. to support expansion and optimization efforts. It has a long-term agreement to supply its entire output of key magnetic rare earths to a special-purpose vehicle backed by U.S. government entities and private investors.

USA Rare Earth said the combined company could generate significant earnings growth in the coming years.

Serra Verde is expected to achieve annualized earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $550 million and $650 million by the end of 2027, based on full production.

Over the longer term, the combined business could generate approximately $1.8 billion in annualized EBITDA by 2030, with strong cash flow conversion.

As part of the agreement, Serra Verde leadership will join the combined company.

Moraitis is expected to serve as president and a board director, and industry veteran Sir Mick Davis will also join the board. Humpton will remain CEO, and existing leadership, including Chairman Michael Blitzer and Chief Financial Officer Rob Steele, will continue in their roles.