US government backs $2.8B rare-earth mine deal in Brazil to break China’s grip on critical minerals

The US government is betting big on a mine in central Brazil to solve one of its most stubborn strategic vulnerabilities: near-total dependence on China for the rare-earth minerals that power everything from F-35 fighter jets to electric vehicles. The Serra Verde mine in Goiás state, Brazil, is at the center of a multi-billion-dollar push that includes a $2.8 billion acquisition by USA Rare Earth, a $565 million loan from the US International Development Finance Corporation (DFC), and a combined $1.55 billion commitment from the Department of War and Defense Logistics Agency. What’s actually happening on the ground Serra Verde entered commercial production in early 2024, making it Brazil’s only commercial-scale producer of all four key magnet rare earths: neodymium, praseodymium, dysprosium, and terbium. They’re the building blocks of permanent magnets used in EV motors, wind turbines, and defense systems. The mine is targeting output of roughly 6,400 metric tons per year of total rare earth oxide equivalent by the end of 2027. USA Rare Earth announced its $2.8 billion acquisition of Serra Verde in April 2026, with the deal pending regulatory approval. The DFC’s $565 million loan p...