USA Rare Earth Acquires Serra Verde for $2.8B, Expands Heavy Rare Earth Mining Outside Asia

【SMM Rare Earth Flash】 U.S. rare earth producer USA Rare Earth (USAR) has completed its US$2.8 billion acquisition of Brazilian producer Serra Verde, adding one of the few operating heavy rare earth mines outside Asia to its growing mine-to-magnet business. Serra Verde's Pela Ema ionic clay operation in Brazil is expanding toward a target capacity of 6,400 t/y of rare earth oxides, providing USAR with direct dysprosium and terbium supply.

The deal is the latest step in USAR's effort to build a fully integrated rare earth supply chain spanning mining, separation, metals, and magnets. The company fully consolidated the Round Top project in Texas in March and acquired UK-based metals and alloys producer Less Common Metals last September. The transaction is backed by government support: Serra Verde's production is covered by a 15-year offtake agreement, and USAR has secured up to US$1.6 billion in funding from the U.S. Department of Commerce. Former Serra Verde CEO Thras Moraitis has joined USAR's board and will assume the CEO role on October 1.