USA Rare Earth (USAR), a Trump administration–backed mining and manufacturing firm, has announced a nearly $3 billion acquisition of Brazil’s Serra Verde Group, the owner of the Pela Ema rare earths mine and processing plant. The deal, finalized on April 20, includes $2.5 billion in stock and $300 million in cash, positioning USAR as a major player in the global rare earths market. This move is part of a broader White House strategy to reduce reliance on China, which currently dominates rare earths mining, refining, and magnet production.
Strategic Move to Counter Chinese Dominance
The Pela Ema mine, operational since 2024, is the first large-scale facility outside Asia capable of producing all four critical magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium. These materials are essential for manufacturing high-performance magnets used in electric vehicles, aerospace, and defense technologies. The acquisition includes a $565 million financing package from the U.S. International Development Finance Corporation to support mine expansion efforts.
USA Rare Earth is now the global champion in rare earths. The world needs what we are building, and we’re moving with purpose and urgency to deliver it.
USAR CEO Barbara Humpton emphasized the deal’s significance, stating, "We’re going to be a major supplier to all the other players in the industry … helping the whole industry scale." The Pela Ema mine has secured a 15-year offtake agreement with U.S. government agencies and private capital sources, ensuring a stable market for its output.
White House Investment in Critical Minerals
The Trump administration has prioritized investments in critical minerals as part of its broader economic strategy. In January, the Department of Commerce invested $1.6 billion in USAR, acquiring an equity stake that could exceed 15%. This funding has accelerated USAR’s growth, including the opening of its Stillwater, Oklahoma, magnet manufacturing plant in March and plans to operationalize its Round Top rare earths mining project in West Texas by 2028.
With this acquisition, Serra Verde’s Brazilian production is projected to account for over 50% of non-China heavy rare earths supply by 2027. The deal also brings industry veterans Thras Moraitis and Mick Davis into USAR’s leadership, further bolstering the company’s strategic positioning. As USAR’s market cap surges nearly 90% year-to-date, the company is poised to become a defining Western player in the critical rare earths industry.