DOD Makes $750M Investment to Support Rare-Earth Processing
The funding includes a $750 million Department of War investment, a $500 million bank commitment and a $300 million government purchase contract.
- On Monday, August 24, 2026, USA Rare Earth, Inc. announced its special purpose vehicle completed $1.55 billion in capitalization arrangements, satisfying a key closing condition for the Serra Verde Group acquisition.
- The U.S. Department of War committed $750 million—a $250 million increase over original requirements—while a Tier-1 institutional bank provided a $500 million Senior Debt Facility and the government secured a $300 million forward purchase contract over five years.
- Upon closing, the company will own the Pela Ema mine in Brazil, the only site outside Asia commercially producing all four magnetic rare earths, with over $1 billion already invested in the mature asset.
- Despite clearing this merger hurdle, USAR stock slid 5% to $18.26 during Monday trading, while investors await the August 28, 2026, special meeting for the stockholder vote on the transaction.
- Completing this acquisition will position the company to operate an integrated rare earth value chain from mine to magnet, establishing a secure, Western-aligned supply of essential materials for defense and energy sectors.
20 Articles
20 Articles
USA Rare Earth Closes In on Brazil's Serra Verde in US$2.8 Billion Deal
USA Rare Earth plans to acquire Brazilian miner Serra Verde in a deal worth about US$2.8 billion. The transaction, expected to close soon, could reshape Brazil rare earths supply. The post USA Rare Earth Closes In on Brazil’s Serra Verde in US$2.8 Billion Deal appeared first on The Rio Times.
Pentagon Announces $750 Million Purchase of Rare Earth Elements From Brazil Mine
The U.S. Department of War has agreed to pay $750 million to buy rare earth minerals needed for national security from a mining project in Brazil, officials announced Aug. 24. The pre-payment ensures that the Serra Verde Group has a buyer for its Pela Ema mine in the State of Goiás in central Brazil. The project is the only commercial mine outside of Asia that can supply all four magnetic rare earth elements—neodymium, praseodymium, dysprosium …
The American company USA Rare Earth announced on Monday (24) that it had completed the capitalization arrangement to complete the purchase of Serra Verde, the only rare-earth mining company operating in Brazil. The company said it had achieved a total of $1.5 billion (R$7.7 billion) to complete the business, which should happen this week. Of this total collected, $750 million (R$ 3.8 billion) came to the U.S. government's War Department. The val…
USA Rare Earth Falls 5% Despite $1.55B Government-Backed Funding, United States Antimony Drops 9%
A $1.55 billion government-backed deal that should signal strength is somehow sending USA Rare Earth shares lower, and the sharpest selloff belongs to a company with no news at all.
DOD makes $750M investment to support rare-earth processing
The Defense Department is contributing $750 million to fund a commercial agreement between rare-earth element producer Serra Verde and buyer US SIIE LLC that would see Serra Verde produce mixed rare-earth carbonates at the company's Pela Ema project in central Brazil, according to a Pentagon announcement released today. The funding -- which comes from the department's Industrial Base Analysis and Sustainment program, is one piece of a broader to…
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