USA Rare Earth Completes $1.55 Billion SPV Funding for Serra Verde Acquisition
USA Rare Earth (NASDAQ:USAR) has finalized a $1.55 billion funding arrangement for a special purpose vehicle aimed at acquiring 100% of Phase 1 rare earth production from the Brazilian company, Serra Verde Group. The U.S. Department of War committed $750 million to this effort—$250 million more than initially planned—and also agreed to purchase up to $300 million in rare earth products over five years through a forward contract. Additional support came from an unnamed Tier-1 institutional bank, which pledged up to $500 million for working capital. This funding brings the SPV’s total capacity to $1.25 billion plus the government's purchase agreement. The Serra Verde acquisition is set to proceed after shareholder approval at a meeting on August 28, 2026. The deal would grant USA Rare Earth control of Brazil’s Pela Ema mine—the only non-Asian rare earth clay mine in commercial production—expanding its global footprint and strengthening the company's position within Western supply chains. The transaction underscores growing U.S. strategic interest in diversifying critical mineral sources away from Asia.
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