USA Rare Earth Inc completed its combination with Serra Verde Group on September 3, 2026, establishing a fully integrated rare earth and permanent magnet platform spanning Brazil, the United States, the United Kingdom and France. The transaction was announced by USA Rare Earth (Nasdaq: USAR) and creates what the company describes as one of the only fully integrated rare earth and permanent magnet platforms outside Asia. Serra Verde operates a heavy-rare-earth mine and processing facility in Goiás, Brazil, which began production in January 2024.
The facility is currently completing an advanced-stage optimization and commissioning program with ramp-up expected in the third quarter of 2026. According to the announcement, the first optimization stage is expected to reach a run-rate of approximately 4,000 tons per annum (tpa) of total rare earth oxide (TREO) production by the end of 2026. A second expansion stage is currently under construction, targeting average production of 6,400 tpa of TREO, with commissioning expected to begin within 12 months.
The company also notes that Serra Verde has the potential to double run of mine (ROM) production through a Phase 2 expansion. Serra Verde is described as the only scaled producer of all four magnetic and other critical heavy rare earth elements outside Asia. The integration combines Serra Verde's upstream mining and processing operation in Brazil with USA Rare Earth's existing and planned assets including upstream, midstream and downstream capabilities across the United States, the United Kingdom and France.
The company states this creates a fully integrated rare earths platform positioned to deliver a reliable supply chain of vital rare earth elements and derivative products. Significant leadership changes accompany the combination. Thras Moraitis, formerly Chief Executive Officer of Serra Verde, has been appointed President of USA Rare Earth and joins its Board of Directors.
On October 1, 2026, Barbara Humpton will retire as CEO of USA Rare Earth, and Moraitis will succeed her as the combined company's chief executive. Sir Mick Davis, Chairman of Serra Verde and former CEO of Xstrata plc, is also joining the USA Rare Earth Board. Moraitis described the combination as the culmination of a 15-year journey to build a scaled, sustainable source of vital rare earth materials.
Executive Chairman Michael Blitzer stated that demand for rare earths and permanent magnets is accelerating globally due to demand from renewable energy, physical AI, semiconductors, aerospace and defense applications. He noted that supply outside Asia remains weak as new sources, especially of heavy rare earths, take time to develop and produce. Barbara Humpton, outgoing CEO, emphasized that the combined company has the assets, expertise and global footprint to manage the full rare earth value chain from mining through finished magnet production.
The market reaction to the completion announcement was positive. USAR shares gained 5.20% following the news, with the stock trading at $18.61 and volume elevated at 2.5 times average levels, indicating notable buying interest. The momentum scanner triggered 14 alerts, reflecting trading interest and price volatility.
However, analysts note that this positive reaction contrasts with recent historical patterns where positive announcements regarding the Serra Verde combination were followed by negative market reactions. Financial advisors for the transaction were Moelis & Company LLC for USA Rare Earth and Goldman Sachs & Co. LLC for Serra Verde.
Legal counsel was provided by Latham & Watkins LLP for USA Rare Earth and White & Case LLP for Serra Verde. Allen Overy Shearman Sterling US LLP provided legal counsel for Serra Verde shareholders. Source: StockTitan, citing USA Rare Earth Inc press release and GLOBE NEWSWIRE announcement dated September 4, 2026.
Source: stocktitan.net