USA Rare Earth to acquire Serra Verde Group in $2.8B deal

USA Rare Earth is moving ahead with the acquisition of Serra Verde Group in a deal that comes out to roughly USD 2.8 billion based on the current share price.

The structure is a mix, about USD 300 million in cash, with the rest coming through newly issued shares. The timeline, for now, points to closing sometime in the third quarter of 2026, assuming regulatory clearances go through.

Serra Verde is not a long-running mine, its production only started in 2024, but it’s already being positioned as one of the few sources outside Asia that can supply all the key magnetic rare earths at scale. That includes Nd, Pr, Dy and Tb, along with yttrium.

There’s also a long-term offtake piece tied to it. A vehicle backed by US government-linked funding and private capital has signed on for 15 years, covering all Phase 1 output of those elements. It also includes price floors, which basically gives the project some downside protection if markets soften.

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The output of Phase 1 is expected to reach around 6,400 tonnes of rare earth oxides annually by the end of 2027. At that point, the project is projected to generate somewhere between USD 550 million and USD 650 million in EBITDA.

The company has been trying to build a more complete chain, processing, separation, and even magnet production, and this plugs into that. Instead of relying on external supply, it gets a producing asset upstream.

Looking further out, the combined business is talking about around USD 1.8 billion in EBITDA by 2030, though that obviously depends on expansion and execution. Liquidity is expected to be in the range of USD 3.2 billion, including access to government-backed financing.

Serra Verde itself already has USD 565 million in funding from the US International Development Finance Corporation, mainly for expansion and optimisation work.

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Thras Moraitis, Chief Executive Officer of Serra Verde Group, stated, “Rare earths represent a strategic nexus where national and energy security, and technological supremacy, converge. The Western rare earth sector stands at a critical inflection point, as governments and strategic industries urgently seek reliable sources of critical rare earths-particularly scarce heavy rare earths. 

Over Serra Verde's 15-year journey, our team has remained steadfastly focused on building a scaled, responsible source of these vital materials that power forward-facing technologies. Joining forces with USA Rare Earth accelerates the realisation of our shared vision: establishing a secure, diversified global rare earth supply chain”.

Thras Moraitis is expected to move into a president role at USA Rare Earth, while Mick Davis joins the board. Existing leadership, including CEO Barbara Humpton, stays in place.

Stepping back a bit, the deal fits into a broader push to build rare earth supply chains outside China. Heavy rare earths, in particular, are still heavily concentrated there, so assets like Serra Verde are getting more attention than they probably would have a few years ago.

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