USA Rare Earth (USAR) has agreed to acquire the Brazilian mining company Serra Verde for US$2.8 billion, marking a major step in its global expansion strategy.
The deal will be financed through a combination of $300 million in cash and the issuance of over 126 million new shares. Once completed—expected in the third quarter of 2026—USAR shareholders will own 66% of the combined company, while Serra Verde investors will hold the remaining 34%.
As part of the agreement, Serra Verde’s leadership will take prominent roles in the merged entity: CEO Thras Moraitis will become president of USAR, and chairman Mick Davis will join its board.
A key attraction is Serra Verde’s Pela Ema mine in Brazil, which is notable for being the only large-scale producer outside Asia capable of supplying the four main magnetic rare earth elements. These materials are essential for technologies such as electric vehicles, renewable energy systems, and defence applications.
Overall, the acquisition is presented as a strategic move to strengthen Western supply chains and reduce dependence on Asia, particularly China, while positioning USA Rare Earth as a leading global player in the rare earths and magnet industry.
