Washington backs Brazil’s Serra Verde mine in $1.55B rare-earth initiative

The US government just wrote a very large check to make sure it never has to ask China for the minerals inside fighter jets and electric vehicles. On August 24, the Department of War increased its commitment in a special-purpose vehicle called US SIIE LLC from $500 million to $750 million, bringing total capitalization for Brazil’s Serra Verde rare-earth mine to $1.55 billion. That financing package also includes $300 million from the Defense Logistics Agency for guaranteed purchases over five years and up to $500 million in bank credit. What Serra Verde actually produces, and why it matters Serra Verde, located at the Pela Ema mine site in Brazil, started commercial production in early 2024. It holds the distinction of being the only commercial-scale producer of magnetic rare earth elements outside Asia. China controls roughly 60-70% of global rare earth mining and an even larger share of processing. The minerals produced at Serra Verde, including neodymium, praseodymium, dysprosium, and terbium, are essential ingredients in the permanent magnets found in everything from missile guidance systems to wind turbines. The mine is targeting output of approximately 6,400 tonnes of total ...