Full English Translation (Professional Financial News Version, Consistent with Original Paragraph Structure, Standard Industry Terminology)

USA Rare Earth, a U.S.-based rare earth enterprise, has officially announced that it will acquire Serra Verde, Brazil’s only operational rare earth mining firm, for **$2.8 billion**. The transaction sets a historic record for the largest merger and acquisition in the global rare earth industry. Following the merger, the combined entity will build an integrated full-supply-chain platform covering both **light rare earths (LREEs)** and **heavy rare earths (HREEs)**. According to projections, its heavy rare earth output is expected to account for roughly half of total supply outside Asia by 2027.

USA Rare Earth disclosed that the $2.8 billion acquisition of Brazilian rare earth producer Serra Verde marks the largest rare earth M&A deal globally to date. The move represents a pivotal step forward for the United States in building its independent, self-sufficient rare earth supply chain.

According to a report by the *Financial Times*, USA Rare Earth reached a definitive acquisition agreement for Serra Verde on Monday. Serra Verde owns and operates a rare earth mine and supporting processing facility in Goiás, central Brazil. The transaction will be completed via a combination of newly issued shares and $300 million in cash, placing an equity valuation of $2.8 billion on Serra Verde. Upon the announcement, USA Rare Earth’s stock surged 13% overnight, lifting its market capitalization to nearly $5 billion.

Barbara Humpton, CEO of USA Rare Earth, stated that the post-merger entity will establish a comprehensive end-to-end rare earth platform spanning processing, separation, metallization, and magnet manufacturing. “This platform will serve as a cornerstone for global rare earth supply security for decades to come,” she noted.

Thras Moraitis, CEO of Serra Verde, will join the board of the combined group. Renowned mining industry figure Sir Mick Davis will also serve as a board director to provide professional strategic support.

## Record-Breaking Transaction Size, Closing Expected Later This Year

David Merriman, Director of Research at mining consultancy Project Blue, commented that the $2.8 billion valuation makes this deal the **largest and most transformative M&A transaction in rare earth industry history**, vastly surpassing all prior sector deals.

The acquisition is structured as a cash-and-stock transaction, with $300 million in cash consideration and the remainder paid through newly issued USA Rare Earth shares. The deal is on track to close later in 2026, at which point full integration of the two companies will be finalized.

Headquartered in Oklahoma, U.S., USA Rare Earth is listed on the Nasdaq exchange. The company has long planned to develop domestic rare earth mining and magnet production operations in the United States, though these initiatives have not yet reached commercial operation stages.

## Serra Verde: Brazil’s Sole Operational Rare Earth Mine with Unique Resource Advantages

Serra Verde’s Pela Ema mine is Brazil’s only currently operational rare earth production base. Humpton described the asset as “one-of-a-kind, and the only scaled producer of all four magnetic rare earth elements outside of Asia.”

Per USA Rare Earth’s forecasts, Serra Verde’s heavy rare earth output will make up around half of total non-Asian global heavy rare earth supply by 2027. Notably, **heavy rare earths are scarcer and higher-value than light rare earths**, serving as critical raw materials for high-end manufacturing.

Serra Verde has previously secured over $500 million in financing from the **U.S. International Development Finance Corporation (DFC)**, the U.S. government’s public development lending institution. It has also signed a 15-year supply agreement with a U.S. government-backed entity, which includes guaranteed minimum floor-price clauses to underpin long-term stable operations.

## Strong U.S. Government Backing to Boost Rare Earth Supply Chain Independence

USA Rare Earth is a core strategic investment of the U.S. government in rare earth supply chain development and a key pillar of America’s push for supply chain autonomy. Washington has committed up to **$1.6 billion in financial support** to the company, underscoring the Trump administration’s high priority on critical mineral supply security.

Rare earths are a collective term for 17 metallic elements, widely applied in 21st-century core technologies including electric vehicle magnets, renewable energy equipment, and defense systems. However, their refining and extraction processes are extremely sophisticated, with stringent requirements for technology and production capacity.

Brazil holds vast rare earth resources, with reserves second only to the world’s largest holder, and vast untapped mineral deposits. This has drawn widespread attention from global enterprises and national governments. Upon completion of the acquisition, USA Rare Earth will establish dual layouts across resource extraction and downstream processing, advancing toward full industrial chain integration and reducing U.S. reliance on overseas rare earth supplies.

## Risk Warning and Disclaimer

The market involves inherent risks, and investment should be undertaken with caution. This article does not constitute personal investment advice, nor does it account for the unique investment objectives, financial conditions, or individual needs of any reader. Investors shall assess whether any opinions, viewpoints, or conclusions herein align with their personal circumstances, and bear all risks associated with investment decisions made based on this content.