Located in Goiás State, Brazil, the Pela Ema mine is the only scaled producer of all four magnetic rare earth elements outside of Asia. On April 20, USA Rare Earth announced the terms of a definitive agreement to acquire the Serra Verde Group for approximately $2.8 billion.
This transaction will create a global rare earth leader by combining the technical refining expertise and well-established supply chain of USA Rare Earth with the high-quality assets and strategic geographic positioning of the Pela Ema mine. As part of the agreement, legacy Serra Verde investors will retain a 34% equity stake in the combined entity. The $2.8 billion acquisition is structured as $2.5 billion in stock and $300 million in cash.
This transaction creates a global leader by integrating USA Rare Earth’s established refining capabilities and supply chain expertise with Serra Verde’s high-quality, low-cost ionic clay assets.
“The acquisition of Serra Verde represents a transformational step in delivering on our ambition to build a global champion… Serra Verde’s Pela Ema mine is a one-of-a-kind asset. By combining Serra Verde’s world-class operations with our processing, separation, metallization, and magnet-making capabilities, we are advancing our goal of creating a fully integrated platform that will serve as a cornerstone of global rare earth supply security for decades to come,” said Barbara Humpton, CEO of USA Rare Earth.
Production Ramp-Up and Vertical Integration
The Brazilian mine, which commenced commercial operations in 2024, is expected to conclude its first phase of ramp-up by mid-2027. The target is to achieve the full nominal capacity of Phase 1 by the end of 2027, with an annual production of approximately 6,400 tonnes of Total Rare Earth Oxides (TREO).
With the combined operations of Serra Verde and USA Rare Earth, Phase 2, slated for 2028, is expected to incorporate vertical integration. The Pela Ema mine will supply feedstock to other rare earth facilities in the U.S. and Europe, driving the production of high-value downstream products, including permanent magnets for electric vehicle (EV) motors and wind turbines.
