Washington is deploying nearly $5 billion to develop Serra Verde’s rare earth mine in Brazil’s Goiás state to reduce its dependence on China, which controls roughly 60% of global rare earth mining for electric vehicles, wind turbines, and weapons systems. Funding comes from multiple sources: the DFC approved $565 million, the Department of War pledged $750 million as part of a broader $1.55 billion package, and USA Rare Earth announced an acquisition of Serra Verde for $2.8 billion in April 2026 with potential government support reaching an additional $1.6 billion. The Pela Ema mine, Brazil’s first large-scale commercial rare earth production facility, targets annual output of 6,400 to 6,500 tonnes of rare earth oxides by 2027. Brazil holds the world’s second-largest rare earth reserves, and the Department of War’s involvement guarantees defense procurement commitments before the mine reaches full production capacity.
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