Norway Takes Over Planning of Europe's Largest Rare Earth Deposit, Boosting EU Supply Prospects

[SMM Rare Earth News Flash] USA Rare Earth agreed to acquire Brazil's Serra Verde Group for $2.8 billion. The deal includes $300 million in cash and stock. After the merger, original USA Rare Earth shareholders will hold 66% and Serra Verde shareholders 34%. Serra Verde owns the Pela Ema ionic clay mine, targeting annual production of 6,400 mt of rare earth oxides by the end of 2027 with plans to double that. It has signed a 15-year offtake agreement with a US government-funded agency, locking in lowest prices for praseodymium, neodymium, dysprosium, and terbium. This acquisition accelerates the company's mine-to-magnet integrated strategy, with combined rare earth oxide capacity reaching 17,100 mt/year after the merger.

This week, the overseas rare earth market was broadly influenced by supply tightening in China, with Pr-Nd and heavy rare earth prices generally rising. On the industry front, Europe and the US accelerated supply chain independence: the Norwegian government took over the development of the Fen deposit, the US acquired Brazil's Serra Verde, and Estonia's Silmet plant commenced production of heavy rare earth separation. In addition, UK magnet recycling and Brazil-Germany cooperation both made substantive progress, as the global ex-China supply chain buildout continued to accelerate.