USA Rare Earth $2.8B Serra Verde deal: supply, capex and mine plan notes for engineers
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
USA Rare Earth will acquire Brazil’s Serra Verde Group for about US$2.8 billion in cash and shares, securing the Pela Ema ionic clay rare earths mine in Goiás, Latin America’s only producing rare earths operation and a key source of heavy Dy, Tb and Y. The deal includes a 15-year offtake for Nd, Pr, Dy and Tb to a US-backed special purpose entity and links Brazilian feedstock with USA Rare Earth’s planned magnet plant in Stillwater, Oklahoma and its Round Top project in Texas. Serra Verde’s stage one nameplate capacity is 6,400 t/y TREO, targeting over 50% of heavy rare earth output outside China by 2027 and projected EBITDA of US$550–650 million by end-2027.
Technical Brief
- Deal consideration comprises US$300 million cash plus 126.849 million new USA Rare Earth shares at US$19.95.
- Pela Ema’s ionic clay mineralisation is soft, near-surface and mined without drilling or blasting.
- Stage one plant is designed for 6,400 t/y TREO nameplate, with a planned stage two expansion.
- Mine life is estimated at 25 years, with targeted EBITDA of US$550–650 million by end-2027.
- Serra Verde closed a US$565 million DFC funding package for Pela Ema operational upgrades in early 2026.
- USA Rare Earth’s Round Top project in Texas is scheduled for first production in late 2028.
- A 15‑year offtake to a US‑backed special purpose entity includes minimum floor prices for Nd, Pr, Dy, Tb.
Our Take
In our database, USA Rare Earth’s commissioning of NdFeB magnet production in Stillwater, Oklahoma and its first commercial yttrium metal output in the UK indicate that acquiring Serra Verde in Goiás gives it upstream heavy rare earth feed to back an already emerging mine-to-magnet chain across three continents.
The International Development Finance Corporation’s prior US$465 million plus US$100 million top-up for Serra Verde, alongside Washington’s separate commitment of up to US$1.6 billion for USA Rare Earth’s Round Top project in Texas, signals that this Brazil M&A deal is effectively knitting together two DFC-backed critical mineral pillars in the Americas.
With Serra Verde projected to supply about half of non-Chinese heavy rare earth output by 2027 and Lynas Rare Earths reporting A$265 million in quarterly revenue from a more diversified base, this transaction positions USA Rare Earth as a direct competitive counterweight to Lynas and MP Materials in future dysprosium–terbium and NdPr offtake negotiations.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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