USA Rare Earth’s Dr. Alex Moyes on Serra Verde and the Race for Heavy Rare Earth Control

Key Takeaways

• Serra Verde is only non‑Asian mine producing NdPr, Dy, Tb at scale
• Phase 1 aims for 6,400 t TREO output by end‑2027
• Round Top targets 70 % heavy‑rare‑earth recovery via heap leaching
• USA Rare Earth invests in processing, including Carester partnership and recycling
• Federal funding ties milestones to U.S. critical‑mineral supply chain goals

Pulse Analysis

The heavy‑rare‑earth segment—dysprosium, terbium and related elements—has become the bottleneck in the global rare‑earth supply chain. While China still dominates total production, its share of heavy‑rare‑earth output is especially high, leaving manufacturers of electric‑vehicle motors, defense systems and advanced electronics vulnerable to supply shocks. By concentrating on the heaviest elements, USA Rare Earth is positioning itself to serve a market where demand outpaces supply and where geopolitical considerations drive investment.

Serra Verde in Brazil gives USA Rare Earth a unique foothold: it is the only operating mine outside Asia that can deliver neodymium‑praseodymium, dysprosium and terbium at commercial scale. The project’s Phase 1 plan to reach 6,400 tons of TREO by 2027 will make it one of the largest non‑Chinese heavy‑rare‑earth sources, providing a reliable feedstock for downstream processing. In Texas, the Round Top deposit, once viewed as a low‑grade polymetallic ore, is now being optimized for heavy‑rare‑earth extraction, with heap‑leach techniques delivering up to 70 % recovery—significantly higher than many Asian clay deposits.

Processing remains the critical hurdle, and USA Rare Earth is tackling it on three fronts. A strategic investment in Carester SAS accelerates the launch of separation facilities, while the company builds its own heavy‑element separations plant and pilots recycling of magnet waste (SWARF) into usable oxides. Federal programs that release funding only upon meeting defined milestones add financial discipline and underscore the U.S. government’s commitment to a domestic critical‑minerals ecosystem. Together, these moves aim to shrink reliance on China, stabilize supply for high‑tech applications, and create a vertically integrated rare‑earth value chain in the West.