USA Rare Earth Acquires Serra Verde in $2.8B Deal to Secure Supply Chain

USA Rare Earth (USAR) has announced a landmark $2.8 billion acquisition of Serra Verde, a move designed to secure critical feedstock and achieve full vertical integration. This strategic transaction is projected to supply nearly 50% of non-Chinese rare earth oxide production by 2027, significantly shifting the global supply chain landscape. From a valuation perspective, USAR’s forward 2030 EV/EBITDA stands at an attractive 2.54x, compared to the broader sector average of 8.53x. This development complements the ongoing growth in the domestic sector, including MP Materials, which recently received an 'Outperform' rating from Wedbush with a $90 price target. Together, these milestones underscore a rapid acceleration toward American independence in the rare earth elements and EV supply chains, reducing long-standing reliance on Chinese exports.