USA Rare Earth agreed on 20 April to acquire Serra Verde Group, owner of the Pela Ema rare earth mine in Goiás, Brazil, for $300m in cash and about 126.8 million new shares, a deal valued at about $2.8bn.
Why USA Rare Earth, Inc. is buying Serra Verde Group
USA Rare Earth said the deal creates a global rare earth platform spanning mining, oxides, metals and magnets. Pela Ema produces all four magnetic rare earths, according to the company's chief executive, and offers potential to double run-of-mine production through a Phase 2 expansion. The combined company targets about $1.8bn of annualised EBITDA by the end of 2030.
Deal terms and financing
The consideration of $300m in cash and 126.849 million USAR shares implied an equity value of about $2.8bn at USAR's 17 April closing price of $19.95. Serra Verde's Phase 1 expansion is funded with a $565m package from the US International Development Finance Corporation. Serra Verde chairman Sir Mick Davis and chief executive Thras Moraitis, both former Xstrata executives, joined USAR's board.
Regulatory approvals and timing
The deal required USAR shareholder approval and US antitrust clearance. In August a government-backed special purpose vehicle that will buy Serra Verde's Phase 1 output completed a $1.55bn capitalisation, satisfying a closing condition. USA Rare Earth announced on 4 September that the combination completed on 3 September 2026.
Market context
Rare earths have become a lever in US-China rivalry; China produces nearly 70% of the world's mined rare earths and almost 90% of refined output, CNBC reported.
