USA Rare Earth Completed Acquisition of Serra Verde
The $2.8 billion deal secures critical mineral supplies for the growing electric vehicle industry.
Updated on Sept. 22, 2026 in Electric Vehicles
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USA Rare Earth has finalized its $2.8 billion acquisition of producer Serra Verde. This strategic move grants the company direct access to dysprosium and terbium resources from the Pela Ema project.
Why it matters
The company aims to bolster its supply chain for essential rare earth elements needed in high-performance electric vehicle motors. This expansion is supported by $1.6 billion in funding from the US Department of Commerce.
The Serra Verde operations include a 15-year offtake agreement backed by the US government. The Pela Ema project is targeting an annual production capacity of 6,400 mt of rare earth oxides.
The players
USA Rare Earth
This company is a critical minerals developer focused on mining and processing rare earth elements.
Serra Verde
This producer operates rare earth mining projects in Brazil.
US Department of Commerce
This federal agency manages US trade and economic development programs, including significant funding for domestic mineral security.
The details
USA Rare Earth previously expanded its capabilities by acquiring Less Common Metals in September 2025 and taking full ownership of the Round Top project in Texas in March 2026. These assets allow the company to vertically integrate its supply chain for critical battery components.
Timeline
September 2025: USA Rare Earth acquired Less Common Metals.
March 2026: The company took ownership of the Round Top project.
April 2026: USA Rare Earth announced the Serra Verde acquisition deal.
September 22, 2026: The acquisition of Serra Verde was completed.
Roadmap
This deal underscores the industry-wide scramble to secure non-Chinese sources of rare earth elements essential for electric vehicle powertrains. It represents a significant step in the broader effort to vertically integrate the mineral supply chain in the Western market.
As supply chains for magnets used in electric vehicle motors become more robust, manufacturers may see increased stability in component pricing and availability. These developments contribute to the long-term feasibility and production scaling of sustainable electric transportation.
The takeaway
Vertical integration in the mining sector is increasingly vital for automakers to mitigate supply chain volatility for specialized electric components. Investors and buyers should watch how these resource-securing efforts impact the long-term cost structures of electric vehicle batteries.
Further reading
Learn more about industry shifts in /Electric Vehicles.
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Should the government provide significant financial support to private companies acquiring international mineral producers?
