The US Department of War has committed $750 million to an investment vehicle supporting an offtake agreement for mixed rare-earth carbonates from the Serra Verde Rare Earth Project in central Brazil. The announcement represents one of the largest single US government commitments to securing rare-earth supply chain access outside of Chinese-controlled channels.
The $750 million investment is being made through US SIIE, LLC under the Industrial Base Analysis and Sustainment programme. It forms part of a broader $1.55 billion initiative designed to establish a secure supply chain for rare-earth elements considered critical to both national defence and economic security.
US Commits $750 Million to Serra Verde Rare Earth Project Financing
The broader $1.55 billion investment structure includes three key components. The Department of War’s Economic Defense Unit has committed $750 million. The Defense Logistics Agency has made a $300 million purchase commitment for rare-earth materials. A money-centre bank has also committed $500 million to the initiative.
Together, these commitments are intended to support an offtake agreement for mixed rare-earth carbonates produced at Serra Verde’s Pela Ema Project in central Brazil. The rare-earth elements targeted by the initiative include dysprosium, terbium, neodymium and praseodymium. These critical minerals are essential inputs for NdFeB permanent magnets, which are used across defence and industrial applications including nuclear submarines, fighter jets, satellites, guided missiles, combat vessels and drones.
The Serra Verde Rare Earth Project has previously received support through a $565 million financing agreement with the US International Development Finance Corporation. The latest $750 million commitment builds on that earlier backing and extends the financial architecture around the Pela Ema Project.
Rare-Earth Supply Chain Gains US Backing
The initiative is focused on developing a mine-to-magnet supply chain that connects rare-earth mining at the Serra Verde Rare Earth Project with emerging US magnet manufacturing capabilities. Mixed rare-earth carbonates from the Pela Ema Project would serve as feedstock for rare-earth processing and separation, ultimately supplying manufacturers producing permanent magnets for defence and industrial use.
Beyond defence, the rare-earth elements produced at Serra Verde have applications in energy infrastructure, transportation, aerospace and electronics. The breadth of end-use markets underscores the strategic value placed on building a reliable rare-earth supply chain backed by long-term offtake and purchase commitments.
The $1.55 billion investment structure around the Serra Verde Rare Earth Project reflects a concerted effort by the US government to diversify critical minerals sourcing. By anchoring supply commitments to a Brazilian rare-earth operation, the initiative aims to reduce reliance on concentrated supply sources and strengthen access to rare-earth elements for both military and civilian manufacturing.
The Serra Verde Rare Earth Project and its Pela Ema operation in central Brazil now sit at the centre of one of the most significant US-backed critical minerals financing efforts currently in progress.