The US government is backing the Serra Verde mine in Goiás state, Brazil, with total investments exceeding $4.9 billion, including a $2.8 billion acquisition by USA Rare Earth, a $565 million loan from the DFC, and $1.55 billion from the Department of War and Defense Logistics Agency. This mine, which entered commercial production in early 2024, is Brazil’s only commercial-scale producer of all four key magnet rare earths: neodymium, praseodymium, dysprosium, and terbium, essential for EV motors, wind turbines, and defense systems. Production targets approximately 6,400 metric tons per year of total rare earth oxide equivalent by the end of 2027. Brazil holds roughly 21 million metric tons of rare earth reserves, the second-largest deposit in the world after China, which currently controls 60-70% of global mining and approximately 90% of downstream processing. This deal is part of a broader strategy to diversify supply chains amid concerns over China’s periodic use of rare-earth export restrictions as a diplomatic tool.
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