USA Rare Earth completes combination with Serra Verde to strengthen global supply chain

On September 3, 2026, USA Rare Earth (Nasdaq: USAR) completed its combination with Serra Verde Group, creating a fully integrated rare earth and permanent magnet platform outside Asia. The move positions the company as a key player in the global supply chain of critical materials essential for Western national security and technological innovation.

Serra Verde, based in Goiás, Brazil, is the only scaled producer of all four critical heavy rare earth elements outside Asia. Its Brazilian mining and processing operation began production in January 2024 and is set to ramp up in the third quarter of 2026. The first stage of the expansion is expected to produce approximately 4,000 tons per annum (tpa) of total rare earth oxide (TREO) by the end of 2026. Construction is underway for a second stage, aiming for an average production of 6,400 tpa of TREO, with commissioning scheduled for the following year. Longer term, Serra Verde has the potential to double its production through a Phase 2 expansion.

The integration of Serra Verde with USA Rare Earth’s existing and planned assets in the United States, the United Kingdom, and France will create a global rare earths leader. USA Rare Earth, through its ownership of Less Common Metals (LCM) and its magnet manufacturing capacity in Stillwater, Oklahoma, operates across the entire value chain from mining to metal-making, alloy production, and neodymium magnet manufacturing.

Michael Blitzer, Executive Chairman of USA Rare Earth, stated, "Demand for rare earths and permanent magnets is accelerating due to the rapid growth of technologies such as renewable energy, physical AI, semiconductors, aerospace, and defense applications. Supply outside Asia remains weak as new sources take time to develop. We have assembled and integrated the key assets and capabilities at each step of the value chain, positioning USA Rare Earth to meet the needs of critical industries. With Serra Verde’s combination complete, our focus now turns to execution, integration, and steady-state supply."

Barbara Humpton, Chief Executive Officer of USA Rare Earth, added, "Today marks a significant milestone for USA Rare Earth. The Serra Verde team is exceptionally talented and has built a strategically important upstream operation. Together, we have the assets, expertise, and global footprint to manage the full rare earth value chain, providing customers with a secure and resilient source of supply."

Thras Moraitis, formerly CEO of Serra Verde, has been appointed President of USA Rare Earth and will join its Board of Directors. On October 1, 2026, Barbara Humpton will retire as CEO, and Moraitis will succeed her. Sir Mick Davis, Chairman of Serra Verde and former CEO of Xstrata plc, will also join the USA Rare Earth Board.

Moraitis stated, "This combination is the culmination of a 15-year journey to build a sustainable source of vital rare earth materials. The combination with USA Rare Earth accelerates our ambition to supply advanced materials, including permanent magnets, ensuring a reliable and integrated supply chain. Together, we will deliver critical materials that shape our society's future."

The combination with Serra Verde brings together USA Rare Earth’s extensive experience in the global rare earths market with Serra Verde’s strategic upstream operations, creating a robust and diversified platform. Advisors for the transaction include Moelis & Company LLC, Latham & Watkins LLP, Goldman Sachs & Co. LLC, White & Case LLP, and Allen Overy Shearman Sterling US LLP.

Forward-looking statements in this release include expectations for production, integration, and financial performance. Risks and uncertainties, including the timing and success of the integration, potential delays, and geopolitical factors, could affect actual results.