USA Rare Earths Buys Brazil's Only Active Rare Earth Mine for $2.8 Billion as Demand Climbs
Updated
Updated · DW (English) · May 31
USA Rare Earths Buys Brazil's Only Active Rare Earth Mine for $2.8 Billion as Demand Climbs
9 articles · Updated · DW (English) · May 31
$2.8 billion bought USA Rare Earths Brazil's only active rare earth mine, Serra Verde's Pela Ema operation in Goias, in an April deal highlighted in the latest rush into the country's deposits.
Pela Ema is the only producer outside Asia able to supply all four magnetic rare earths at scale, the company said, and it already has a 15-year supply agreement with several US government agencies.
Brazil is drawing miners because it holds about 21 million tons of rare earth reserves—the world's second largest—and 73% of its deposits are easier-to-mine ionic clays used for dysprosium and terbium.
2,758 rare earth projects are now under review in Brazil after applications surged, but the country still lags badly in processing: China controls more than 90% of refining capacity and about 95% of permanent magnet production.
Will Brazil build a high-tech industry from its rare earths or just export its raw wealth again?
Is the US-backed rush for Brazil's minerals about green energy or geopolitical power?
USAR’s $565 Million Acquisition of Serra Verde: Transforming Western Rare Earth Supply Chains and Brazil’s Strategic Role
Overview
The acquisition of Serra Verde by USA Rare Earth (USAR) in April 2026 marks a major shift in the global rare earth sector. This deal highlights the urgent need for secure and reliable supplies of critical rare earth elements, as Western countries seek to reduce dependence on concentrated sources. A key part of the transaction is a 15-year supply agreement, which could bring regulatory scrutiny in Brazil. By combining Serra Verde’s mining strengths with USAR’s downstream capabilities, the acquisition aims to build a resilient, integrated supply chain for rare earths, supporting both national security and technological advancement.