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, according to a press release. 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 other conditions. The acquisition adds the Pela Ema rare earth mine and processing facility in Brazil, which the company describes as the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium.
This strategic move positions the combined company as a fully integrated platform spanning mining through magnet production, strengthening supply chain security and supporting long-term growth. The acquisition is particularly significant given the current geopolitical landscape, where rare earth elements are critical for defense, aerospace, semiconductor, energy, data center, mobility, and healthcare sectors. By securing a non-Asian source of these materials, USA Rare Earth aims to reduce dependency on Chinese supply chains, which currently dominate global rare earth production.
The Pela Ema mine in Brazil is a key asset, as it is one of the few rare earth projects outside Asia capable of producing all four magnetic rare earths simultaneously. This capability is vital for manufacturing permanent magnets used in electric vehicles, wind turbines, and military equipment. The acquisition also complements USA Rare Earth's existing assets, including its ownership of Less Common Metals (LCM), a leading producer of rare earth metals and alloys, and its development of magnet manufacturing capacity in Stillwater, Oklahoma, and the Round Top deposit in Texas. Together, these assets create a vertically integrated supply chain that spans from mining to final magnet production.
The transaction is expected to close in 2026, and it will require approval from shareholders and regulators. For more details, the full press release can be accessed at https://ibn.fm/K46Iw. USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain across the United States, United Kingdom, France, and Brazil. More information about the company is available at https://www.usare.com/.
This acquisition underscores the growing importance of securing domestic and allied sources of critical minerals. With the demand for rare earth elements expected to surge due to the energy transition and technological advancements, the deal positions USA Rare Earth as a key player in the Western supply chain. By integrating Serra Verde's production capabilities, the company can offer a stable supply of magnetic rare earths to industries that rely on these materials for high-performance applications.
The announcement comes amid increasing government efforts in the U.S. and Europe to reduce reliance on Chinese rare earths. The deal could also have implications for pricing and availability of rare earth magnets, which are essential components in modern technologies. As the transaction progresses, stakeholders will be watching closely for regulatory decisions and the integration of the two companies' operations.
