Serra Verde entered commercial production at its Pela Ema mine in Goias, Brazil in early 2024, making it the first operating ionic clay Serra Verde rare earth deposit in the Western world. The company is the only scaled producer outside Asia capable of supplying all four magnetic rare earth elements, neodymium, praseodymium, dysprosium and terbium, from a single operation. USA Rare Earth (NASDAQ: USAR) announced a definitive agreement on 20 April 2026 to acquire 100% of Serra Verde Group for approximately $2.8 billion, a deal expected to close in the third quarter of 2026 pending USAR shareholder approval and customary regulatory conditions.
Company Overview
Serra Verde Group, through its operating subsidiary Serra Verde Pesquisa e Mineracao (SVPM), mines and processes rare earth oxides from the Pela Ema deposit near Minacu, Goias state. The company is privately held, backed by Denham Capital, Vision Blue Resources, Orion Resource Partners and The Energy and Minerals Group, following more than $1.1 billion in capital investment to bring Pela Ema into production.
Under the pending acquisition agreement, USA Rare Earth will pay $300 million in cash plus 126.849 million newly issued USAR shares, implying an equity value of roughly $2.8 billion for Serra Verde and leaving Serra Verde shareholders with approximately 34% of the combined company. Full terms are set out in USA Rare Earth’s investor relations announcement. Serra Verde CEO Thras Moraitis is expected to become President of the combined company on closing, with Chairman Sir Mick Davis joining the USAR board.
Key Assets & Operations
Pela Ema is an ionic clay saprolite deposit, the same geological type responsible for southern China’s heavy rare earth dominance, and yields a Mixed Rare Earth Carbonate rich in dysprosium and terbium alongside neodymium, praseodymium and yttrium. The mine is targeting 6,400 tonnes of total rare earth oxides annually by the end of 2027 over an initial 25-year mine life, with potential for a Phase 2 expansion that could double run-of-mine output before the end of the decade.
Serra Verde secured a $565 million financing package from the U.S. International Development Finance Corporation in February 2026, structured to fully fund optimisation and expansion through to positive cash flow. Concentrate is currently shipped to China for separation under an arrangement expiring at the end of 2026, a constraint covered in more depth in REM’s analysis of Brazil’s processing gap.
Latest Projects & Developments
The centrepiece of Serra Verde’s current commercial position is a 15-year, 100% offtake agreement covering Phase 1 output of neodymium, praseodymium, dysprosium and terbium, supplied to a special purpose vehicle capitalised by U.S. government agencies and private investors. The agreement includes guaranteed price floors of $110/kg for neodymium and praseodymium, $575/kg for dysprosium and $2,050/kg for terbium, with Serra Verde retaining 70% of any upside above those floors net of separation costs.
The USA Rare Earth acquisition, detailed in REM’s coverage of the $2.8bn deal, would combine Serra Verde’s mining output with USAR’s processing, separation, metallisation and magnet-making capacity across the United States, United Kingdom and France, creating what the companies describe as the first fully integrated mine-to-magnet platform outside China. Closing remains subject to a USAR shareholder vote given the scale of share issuance involved.
Serra Verde in the Global REE Market
Serra Verde’s significance rests on heavy rare earth supply rather than volume alone. Brazil holds the world’s second-largest confirmed rare earth reserve base behind China, concentrated in ionic clay formations across Goias, Minas Gerais and Bahia, as detailed in REM’s Brazil rare earth country profile. Within that base, Pela Ema is the only producing asset, giving Serra Verde a structural head start over Brazilian peers still at the permitting or construction stage.
If the USAR acquisition closes as planned, Serra Verde becomes the upstream anchor of a company already building downstream capacity through its Less Common Metals alloy business and Stillwater, Oklahoma magnet facility, profiled in REM’s USA Rare Earth company profile. Management projects Serra Verde alone could deliver $550-650 million in annualised EBITDA by the end of 2027 on a fully separated-oxide basis, a forecast that assumes production ramp and offtake pricing perform as structured, not a confirmed result.
Company Snapshot
| Serra Verde Rare Earth — Key Facts | Detail |
|---|---|
| Flagship asset | Pela Ema mine, Goias, Brazil |
| Deposit type | Ionic clay saprolite |
| Commercial production start | Early 2024 |
| Target output | 6,400 tonnes TREO/year by end-2027 |
| Key elements | Neodymium, praseodymium, dysprosium, terbium, yttrium |
| Current ownership | Denham Capital, Vision Blue Resources, Orion Resource Partners, EMG |
| Pending acquirer | USA Rare Earth (NASDAQ: USAR) |
| Deal value | ~$2.8 billion ($300m cash + 126.849m USAR shares) |
| Expected close | Q3 2026, subject to USAR shareholder approval |
This article is for informational purposes only and does not constitute investment advice. Corporate and transaction details are subject to change; verify current status before making investment decisions.
What does Serra Verde produce?
Serra Verde produces a rare earth concentrate rich in neodymium, praseodymium, dysprosium, terbium and yttrium from its ionic clay deposit in Brazil. It is the only producer outside Asia currently supplying all four magnetic rare earths from a single operation.
Where is Serra Verde’s mine located?
Serra Verde operates the Pela Ema mine and processing plant near Minacu in Goias state, central Brazil, an ionic clay saprolite deposit similar in geology to southern China’s heavy rare earth districts.
Is Serra Verde being acquired by USA Rare Earth?
USA Rare Earth has a definitive agreement to acquire 100% of Serra Verde Group. The transaction is pending shareholder and regulatory approval; see the article body for current status and consult USA Rare Earth’s investor relations page for the latest confirmation before treating the deal as closed.
How is Serra Verde’s rare earth output sold?
Serra Verde has a 15-year, 100% offtake agreement covering its Phase 1 magnetic rare earth production, sold to a special purpose vehicle backed by U.S. government and private capital, with contractual minimum price floors. Structural detail is covered in the article body.
Who owns Serra Verde?
Serra Verde is currently privately held by a group of investors including Denham Capital, Vision Blue Resources and Orion Resource Partners. Ownership is expected to change on completion of the pending USA Rare Earth acquisition described above.
