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

The purchase links a producing Brazilian mine to U.S. processing to cut reliance on Chinese rare earths.

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Barbara Humpton, chief executive officer of USA Rare Earth, at the Semafor World Economy Summit during the International Monetary Fund (IMF) and World Bank Spring meetings in Washington, DC, US, on Monday, April 13, 2026. Photographer: Aaron Schwartz/Bloomberg via Getty Images
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Overview

  • USA Rare Earth said Monday it signed a $2.8 billion definitive deal to buy Serra Verde, paying $300 million in cash plus about 126.8 million new shares.
  • The acquisition includes $565 million in U.S. International Development Finance Corporation financing and a 15-year offtake that sets price floors for neodymium, praseodymium, dysprosium, and terbium.
  • Serra Verde’s Pela Ema ionic‑clay mine began output in 2024 and is guided to about 6,400 metric tons of rare‑earth oxides a year by late 2027, supplying heavy elements that let magnets run at high heat in EVs and wind turbines.
  • Management guides $550–$650 million in run‑rate EBITDA from Serra Verde by the end of 2027 and roughly $1.8 billion for the combined company in 2030, with closing targeted for Q3 2026 pending shareholder and regulatory approvals; analysts say proving large‑scale separation and processing remains the key hurdle.
  • Leadership will expand as Serra Verde chairman Sir Mick Davis and CEO Thras Moraitis join USA Rare Earth’s board, with Moraitis set to become president at closing to steer integration.