USA Rare Earth to Pay $300 Million Cash, Issue 126.8 Million Shares for Serra Verde
USA Rare Earth agreed to acquire Brazil’s Serra Verde Group for $300 million cash and 126.8 million shares, valuing it at $2.8 billion. The deal covers a 15-year U.S.-backed offtake agreement for all four magnetic rare earths, projecting $550–$650 million EBITDA for Serra Verde by 2027 and $1.8 billion combined EBITDA by 2030.
1. Acquisition Terms
USA Rare Earth agreed to acquire Serra Verde Group, owner of the Pela Ema mine and processing plant in Goias, Brazil, for $300 million cash plus 126.8 million new shares. The transaction, valuing Serra Verde at $2.8 billion, is expected to close in Q3 2026, subject to regulatory approvals.
2. Strategic Rationale
Serra Verde is the only scaled producer of neodymium, praseodymium, dysprosium and terbium outside Asia. The 15-year U.S.-backed offtake agreement secures these critical elements and advances USA Rare Earth’s goal to build a Western rare earth supply chain.
3. Financial Projections and Synergies
Serra Verde is forecast to reach $550–$650 million in annualized EBITDA by end-2027. USA Rare Earth targets $1.8 billion combined EBITDA by 2030, leveraging production scale and integration of upstream and processing assets.
4. Acquisition History
This deal follows USA Rare Earth’s purchase of Less Common Metals in late 2025 and its March 2026 agreement to acquire Texas Mineral Resources, consolidating full ownership of the Round Top deposit in West Texas and expanding its rare earth portfolio.