USA Rare Earth Acquires $2.8B Brazilian Mine, Targets $550M–$650M EBITDA by 2027
USA Rare Earth agreed to acquire Brazil’s Pela Ema mine for $2.8 billion, adding an asset projected to generate $550–650 million in EBITDA by 2027. The company will build a transatlantic processing hub in France with Carester SAS and government backing, while hitting commercial magnet production milestones.
1. $2.8B Acquisition of Pela Ema Mine
USA Rare Earth closed a $2.8 billion deal for the Pela Ema rare earth elements mine in Brazil, securing a revenue-generating asset with projected EBITDA of $550–650 million by 2027. The acquisition aims to reduce reliance on foreign supply and accelerate the company’s margin expansion.
2. Transatlantic Processing Hub in France
The company is partnering with Carester SAS to establish a processing facility in France, backed by French government support, to refine rare earth concentrates for magnet production. This hub will streamline logistics between South America and Europe, enhancing vertical integration.
3. Operational Milestones and Market Response
USA Rare Earth has commenced commercial magnet production and reached key plant commissioning targets, fueling a stock surge of over 50% in the past 30 days. Analyst upgrades and growing demand for domestic rare earth supply have underpinned investor optimism.