USA Rare Earth agrees $3.1bn Serra Verde acquisition
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Stillwater, Oklahoma — USA Rare Earth announced on Monday that it has agreed to acquire Serra Verde Group, owner of the Pela Ema rare earth mine in Goiás, Brazil, for $300 million in cash plus 126.849 million newly issued shares. The firms said the transaction implies an equity value near $2.8 billion and total consideration roughly $3.1 billion, and they expect the deal to close in the third quarter of 2026 subject to regulatory approvals.
On Monday the companies disclosed a 15-year offtake agreement committing 100% of Phase 1 production to a U.S.-capitalised special purpose vehicle with guaranteed price floors. USA Rare Earth and Serra Verde have reported government-backed financing commitments — including a $1.6 billion package for USA Rare Earth and a $565 million financing for Serra Verde — and Phase 1 is projected to reach full capacity by the end of 2027 with stated EBITDA estimates for that period.
More context
Timeline
- 1. 2024: Pela Ema mine and processing plant entered production after over $1.1 billion of capital investment.
- 2. January 2026: USA Rare Earth agreed a $1.6 billion debt-and-equity funding package with the U.S. government.
- 3. February 2026: Serra Verde secured a $565 million financing package supported by U.S. sources.
- 4. 20 April 2026: USA Rare Earth announced a definitive agreement to acquire Serra Verde for $300 million cash plus ~126.8 million shares.
- 5. Q3 2026: Transaction expected to close subject to customary closing conditions and regulatory approvals; Phase 1 full capacity targeted by end-2027.
Why it matters
This deal could stabilize rare earth prices, used in many electronics. If you own tech stocks or buy gadgets, watch for potential price shifts. Check your portfolio and consider if it's time to adjust.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
