USA Rare Earth said on April 20 it will buy Brazilian rare earths miner Serra Verde in a cash-and-stock deal worth $2.8 billion, the latest in a string of acquisitions boosting the company's mining, processing and magnet-making portfolio.
In less than a year, USA Rare Earth's international acquisition spree has seen it add British rare earths metals and alloy producer Less Common Metals and a stake in French processing firm Carester to its magnet manufacturing plant in Stillwater, Oklahoma, and its Round Top Texas mine.
The latest buyout, which comes after the U.S. Commerce Department took a stake in USA Rare Earth in January, will give the company control of Serra Verde’s Pela Ema mine, which is rich in heavy rare earths, unlike many other Western deposits, making it particularly attractive.
Forecast shortages of heavy rare earths dysprosium and terbium could be a stumbling block in the West's scramble to create domestic supply chains of rare earths and permanent magnets vital for the energy transition, electronics and defence applications.
USA Rare Earth will pay $300 million in cash and 126.9 million in its own newly issued shares for Serra Verde, with the deal expected to close in the third quarter of 2026, a statement said.
The company agreed to a $1.6 billion debt-and-equity funding package with the U.S. government in January, while privately held Serra Verde agreed a financing deal worth $565 million with Washington in February.
The U.S. group's Oklahoma magnet plant is expected to launch later this year.
