USA Rare Earth, Inc. (NASDAQ: USAR) has entered a definitive agreement to acquire 100% of Serra Verde Group in a transaction valued at approximately $2.8 billion, the company announced. The deal, expected to close in the third quarter of 2026 subject to regulatory approvals, includes $300 million in cash and 126.8 million shares of common stock. The acquisition adds the Pela Ema rare earth mine and processing facility in Brazil, which is currently the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium.
This strategic move positions the combined company as a fully integrated platform spanning mining through magnet production, strengthening supply chain security and supporting long-term growth. According to the press release, the acquisition will enable USA Rare Earth to operate across the entire value chain from mining to metal-making, alloy production, and neodymium magnet manufacturing. The company already owns Less Common Metals (LCM), one of the world's leading producers of rare earth metals and alloys, and is developing magnet manufacturing capacity in Stillwater, Oklahoma, as well as the Round Top deposit in Texas.
The Pela Ema mine is a significant asset because it produces all four magnetic rare earths, which are critical for applications in aerospace and defense, semiconductors, energy, data centers, physical AI, mobility, healthcare, and industrial sectors. With this acquisition, USA Rare Earth is establishing a secure, Western-aligned supply of these essential materials. The company's integrated value chain reduces dependence on Asian supply sources, which currently dominate rare earth processing.
For more details, the full press release is available at https://ibn.fm/K46Iw. USA Rare Earth's website provides additional information at https://www.usare.com/.
The transaction is subject to customary closing conditions and approvals, including regulatory clearances. The acquisition is expected to close in the third quarter of 2026. The combined entity will be well-positioned to serve the growing demand for rare earth materials in various high-tech industries.
