USA Rare Earth Acquires Brazil Mine to Secure Aerospace Magnets

In a transformative move for the rare earths sector, USA Rare Earth announced a nearly $3 billion acquisition of Brazil's Serra Verde Group on April 20, 2026. The deal, comprising over $2.5 billion in stock and $300 million in cash, targets the Pela Ema mine-the first large-scale operation outside Asia producing all four key magnetic rare earths: neodymium, praseodymium, dysprosium, terbium, plus heavy rare earth yttrium. This acquisition positions USA Rare Earth as a pivotal non-Chinese supplier amid escalating tensions over Beijing's dominance in rare earth refining and magnet production.

The strategic importance to aerospace cannot be overstated. These elements form the backbone of neodymium-iron-boron (NdFeB) magnets, indispensable for electric actuators in flight control systems, turbine motors, and avionics in modern aircraft. Dysprosium and terbium enhance magnet heat resistance, crucial for engines and avionics bays where temperatures exceed 200°C. Yttrium stabilizes thermal barrier coatings on turbine blades, enabling higher operating efficiencies and preventing catastrophic failures in jet engines like those on the F-35 fighter, which requires over 400 kg of rare earth materials per unit.

China's April 2025 export controls have driven yttrium prices skyward, forcing engine makers to recycle stocks and seek alternatives, while delaying avionics and actuator production. Serra Verde's 15-year, 100% offtake agreement with U.S. agencies ensures dedicated supply for defense and aerospace needs. Backed by $565 million from the U.S. International Development Finance Corporation, the mine's expansion will cover over 50% of non-Chinese heavy rare earth output by 2027.

USA Rare Earth's CEO Barbara Humpton emphasized the urgency: "The world needs what we're building." With facilities now spanning the U.S., Brazil, and the U.K.-including a new Oklahoma magnet plant and recent commercial yttrium production-this powerhouse addresses supply vulnerabilities head-on. For aerospace firms grappling with procurement delays and rising costs, the deal promises reliability, reducing risks to production rates and mission-critical performance in satellites, navigation systems, and high-thrust engines.