USA Rare Earth Buys Serra Verde for $2.8 Billion as Brazil Draws Western Rare-Earth Push
Updated
Updated · Mint · Jun 9
USA Rare Earth Buys Serra Verde for $2.8 Billion as Brazil Draws Western Rare-Earth Push
3 articles · Updated · Mint · Jun 9
Summary
$2.8 billion is the price USA Rare Earth agreed in April to pay for Serra Verde, a Brazil miner backed by U.S. financing and the only large-scale producer outside Asia extracting rare earths from clay deposits.
China’s 2025 export controls accelerated the deal and a wider Western rush into Brazil, which holds an estimated 21 million tons of rare earths—about a quarter of global reserves—while Beijing still controls more than 90% of processing and magnet production.
More than 3,000 Brazilian research-permit applications tied to rare earths have been filed since 2023, and miners including Viridis, Meteoric and Aclara are advancing projects aimed eventually at processing, metals and magnet-making.
Brazil is resisting pressure to join a U.S.-led minerals bloc, with President Luiz Inácio Lula da Silva and his ministers saying the country will accept investment from the U.S., Europe, China and others as long as sovereignty is respected.
That neutrality could leave Washington with a partial win: Brazil may become a major rare-earth hub, but not necessarily one aligned exclusively with Western supply chains.
Can Brazil build a rare-earth empire while welcoming investment from both the U.S. and its chief rival, China?
Brazil offers eco-friendly rare earths at a higher cost. Will global markets pay a premium for a greener, non-Chinese supply chain?
USA Rare Earth’s $2.8 Billion Serra Verde Deal: A Turning Point for Western Rare Earth Supply Chains and China Decoupling
Overview
USA Rare Earth’s $2.8 billion acquisition of Brazil’s Serra Verde Group marks a major step for Western nations seeking to secure rare earth supply chains and reduce reliance on dominant foreign producers, especially China. This move is driven by the expected surge in demand for rare earths due to the clean energy transition. Serra Verde’s operational status makes it a low-risk choice, and the deal is strongly backed by U.S. government funding. By integrating Serra Verde, USA Rare Earth aims to become a leading Western producer of heavy rare earths, supporting national security and economic stability.