USA Rare Earth, Inc. announced a definitive agreement to acquire Serra Verde Group, a Brazilian rare earths producer, for approximately $2.8 billion. The acquisition involves $300 million in cash and 126.849 million newly issued USA Rare Earth shares, valued at $19.95 each as of April 17, 2026. This strategic move aims to create a global leader in rare earth elements, spanning mining, processing, and magnet production, and significantly challenge China's current dominance in the sector. The deal is expected to close in the third quarter of 2026, pending customary closing conditions and regulatory approvals.
Following the combination, Thras Moraitis, the current CEO of Serra Verde Group, will assume the role of President of the combined company. Sir Mick Davis, Chairman of Serra Verde and a renowned figure in the mining industry, will join the board of directors. Barbara Humpton will continue as CEO of USA Rare Earth. The expertise brought by Moraitis and Davis, both former executives of Xstrata Plc, is expected to strengthen USA Rare Earth’s leadership in critical minerals. The expanded team aims to identify opportunities for both organic and inorganic growth across the rare earth supply chain.
The acquisition adds Serra Verde's Pela Ema mine in Goiás, Brazil, to USA Rare Earth's portfolio. This mine is notable as the only scaled producer outside Asia capable of supplying all four magnetic rare earth elements (Nd, Pr, Dy, and Tb), along with other essential rare earth elements like Yttrium. Serra Verde has also secured a 15-year offtake agreement to supply 100% of its Phase I production to a special purpose vehicle capitalized by various U.S. government agencies and private capital sources. This agreement includes guaranteed price floors for magnetic rare earths, ensuring stable revenue and supporting investment.
This tie-up underscores a broader push by the U.S. and its allies to establish independent and secure supply chains for rare earths, which are crucial for electric vehicles, wind turbines, and military technology. The combined company projects to generate approximately $1.8 billion in annualized EBITDA by the end of 2030, with Serra Verde alone expected to contribute $550-$650 million in annualized run-rate EBITDA by the end of 2027. This aggressive expansion strategy, focusing on both acquisitions in mining and magnet-making and organic growth in processing, aims to reduce Western reliance on Chinese rare earth production.
