USA Rare Earth Buys Brazil Serra Verde Mine for $2.8B

Coup with signalling effect US Company Rare Earths secures Brazilian Rare Earth Mine for $2.8 Billion

2026-04-22 From Detlev Karg 1 min Reading Time

USA Rare Earth has agreed to acquire Brazil’s Serra Verde Group for around $2.8 billion, taking control of a strategically important rare earth mine and processing facility. The deal bolsters the US mine-to-magnet supply chain at a time when geopolitical tensions with China are heightening supply risks. European defence manufacturers and policymakers should take note.

Pela Ela Mine in Brasil combines extraction and processing of Rare Earths. (Photo: Serra Verde Group) — Pela Ela Mine in Brasil combines extraction and processing of Rare Earths.
(Photo: Serra Verde Group)

The deal comes at a pivotal moment. Heightened geopolitical tensions between the US and China have sharpened concerns over reliance on Chinese dominance in rare earth production, which, according to longstanding industry estimates, accounts for more than 80% of global supply. By securing Serra Verde’s operating mine in Goiás, Brazil - a facility already producing rare earth oxides - USA Rare Earth is positioning itself to feed processed materials directly into American manufacturing, reducing vulnerabilities exposed by recent export restrictions and trade frictions.

Groundwork already laid by the Biden administration

Executive orders by the Biden–Harris administration, alongside the use of the Defense Production Act, have prioritised domestic sourcing of critical minerals, with rare earths identified as a key concern by the Department of Defense and the Department of Energy. Serra Verde’s mine is among the few non-Chinese sources capable of near-term scaled production, delivering separated oxides such as neodymium, praseodymium, terbium and dysprosium — essential inputs for high-performance magnets used in F-35 fighter jets, wind turbines and electric vehicle motors.

Europe is lagging behind

Germany and Europe are, for the time being, left trailing. There had been discussions here, too, about securing at least a stake in Serra Verde - and with it a foothold for domestic industry. Acting swiftly and decisively, and with the necessary financial firepower, to secure critical resources: that is what raw materials policy looks like in the geo-economic reality of the 21st century. Securing the foundations for Germany’s and Europe’s already heavily strained industrial base has now become even more complex.

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