USA Rare Earth announced on Monday that it will purchase the Brazilian mining company, Serra Verde. The massive business deal carries a total price tag of $2.8 billion. To complete the purchase, the American company will hand over exactly $300 million in cash and issue 126.9 million shares of its own newly created stock. Investors loved the news, pushing shares of USA Rare Earth up by exactly 9 percent during afternoon trading. Corporate executives expect the entire transaction to close smoothly during the 3rd quarter of 2026.
This huge acquisition directly targets the global supply chain for critical materials. Modern tech companies and defense contractors desperately need rare earth elements to build electronics, permanent magnets, and green energy tools. Right now, China heavily dominates this market. Chinese factories process roughly 90 percent of the world’s rare earth output, giving them the power to control global prices. Western nations want to break this monopoly. The Pela Ema mine in Brazil gives the American company a massive advantage because it holds rich deposits of heavy rare earths, including dysprosium and terbium. Many other Western mines completely lack these specific heavy elements.
The United States government strongly supports this corporate expansion. Washington officials view rare earth independence as a vital national security issue. Back in January, the company agreed to a massive $1.6 billion funding package with the government, and the US Commerce Department actually bought a direct investment stake in USA Rare Earth. Meanwhile, the privately held Brazilian mine secured its own $565 million financing agreement with Washington in February. This heavy government backing gives the combined company the financial power it needs to compete directly with foreign rivals.
USA Rare Earth CEO Barbara Humpton leads this aggressive growth strategy. She stated that this deal helps the company become a global champion and the best partner for rare earth metals and magnets. Over the last 12 months, her company went on a massive international shopping spree. They bought Less Common Metals, a British alloy producer, and purchased a significant stake in Carester, a French processing firm. The company also operates a large mine in Round Top, Texas. Later this year, they plan to open a brand new magnet manufacturing plant in Stillwater, Oklahoma.
The Brazilian mine brings serious production power to the table. Serra Verde officially started commercial operations in early 2024. While the miners have not yet reached their maximum capacity, they plan to extract exactly 6,400 metric tons of rare earth oxides every year by 2027. To protect the business from wild price swings, the two sides signed a special 15-year supply agreement. A special investment group, funded by the US government and private investors, will buy 100 percent of the mine’s output at a guaranteed price. This group can then sell the materials to anyone, including back to the American parent company, for use in building magnets.
When the ink finally dries on the contract, the corporate leadership team will experience several big changes. Thras Moraitis, the current CEO of the Brazilian mine, will pack his office and become the new president of USA Rare Earth. He will also claim a seat on the corporate board of directors. Mick Davis, the current chair of the mining company and former head of Xstrata, will join him on the board. The original owners of the Brazilian mine, which include private equity groups like Denham Capital, Energy and Minerals Group, and Vision Blue, will still retain exactly a 34 percent stake in the newly combined super company.
