The United States just landed a major blow against China’s stranglehold on critical minerals.
USA Rare Earth announced a $2.8 billion cash-and-stock takeover of Brazil’s Serra Verde Group, owner of the Pela Ema mine in Goiás. This is the only large-scale operation outside Asia producing all four key magnetic rare earth elements — neodymium, praseodymium, dysprosium, and terbium — essential for electric motors, defense systems, and high-tech manufacturing.
The deal includes a 15-year US government-backed offtake agreement with price floors, locking in supply for American needs. Backed by the Commerce Department and other federal support, it fast-tracks a full Western mine-to-magnet supply chain.
China controls over 85 percent of global rare earth processing. That era of vulnerability ends now. While Beijing spent years cozying up to South America for resources, US companies are moving in with real capital and strategy to secure the materials that power our future.
This is not just business. It is strategic decoupling from a hostile rival. America is finally playing to win the resource war that matters most for national security and economic strength.
Sources:
– Mario Nawfal on X (original post)
– USA Rare Earth announcement details
