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USA Rare Earth has unveiled plans to acquire Brazilian miner Serra Verde in a deal valued at $2.8 billion, marking a significant push to loosen Asia's grip on critical minerals and expand Western supply options.
The Oklahoma-based company said the transaction will include $300 million in cash alongside newly issued shares, with completion targeted for the third quarter of 2026 pending regulatory approvals and closing conditions.
The move comes as rare earth elements increasingly sit at the center of geopolitical tensions, particularly between the United States and China, which dominates global production and refining capacity. China is responsible for roughly 70% of mined supply and close to 90% of processed output, giving it substantial influence over pricing and availability.
Against this backdrop, industry leaders and policymakers have warned of the risks tied to overreliance on a single supplier, especially as demand accelerates with the global shift toward clean energy, electric vehicles and advanced defense technologies.
USA Rare Earth CEO Barbara Humpton said the acquisition would provide access to a producing asset capable of supplying all four key magnetic rare earth elements essential for high-performance permanent magnets.
Rare earths comprise a group of 17 elements known for their unique magnetic properties, making them indispensable in technologies ranging from smartphones to military systems.
Serra Verde's Pela Ema mine stands out as one of the few operations outside Asia able to deliver significant volumes of heavy rare earths such as dysprosium and terbium, materials expected to face supply constraints in coming years.
The Brazilian company has also secured a 15-year agreement covering 100% of its initial production, supported by U.S. government-backed financing and private capital, including mechanisms designed to stabilize prices.
The acquisition continues USA Rare Earth's broader expansion strategy, which has included investments across mining, processing and magnet manufacturing.
Shares of the company showed mixed early trading signals, though they remain sharply higher for the year overall.
Investors are also watching how integration of Serra Verde leadership and assets will shape future output growth and the company's positioning within an increasingly competitive global rare earth market landscape.
