USA Rare Earth Announces Start of Commercial-Scale Shipments and Sale of Heavy Rare Earth MREC from Serra Verde to US SIIE, LLC
Key Highlights
- ➤USAR began commercial-scale MREC shipments and received first offtake payments in November
- ➤15-year, 100% take-or-pay agreement covers Serra Verde Phase I production
- ➤Stage 1 targets ~4,000 tpa TREO run rate by Q2 2027
- ➤Stage 2 targets ~6,400 tpa TREO run rate by year-end 2027
- ➤Offtake floors set at $575/kg for Dy and $2,050/kg for Tb
Expert Statements
Thras Moraitis, Chief Executive Officer of USA Rare Earth
“The start of commercial-scale shipments of MREC containing all four magnetic rare earths, yttrium and other valuable heavy rare earths to our offtake partner is a defining milestone for USA Rare Earth and for the broader effort to build a secure, reliable and responsible non-China supply chain for the heavy rare earths that power tomorrow’s modern economy.”
Thras Moraitis, Chief Executive Officer of USA Rare Earth
“USA Rare Earth is the only scaled producer outside Asia of the vital heavy rare earths used in advanced permanent NdFeB magnets, as well as other elements embedded in technologies such as renewable energy, mobility, robotics, drones, semiconductors, medical applications and defense.”
Thras Moraitis, Chief Executive Officer of USA Rare Earth
“With Stage 1 of the optimization and expansion program successfully completed and commissioned, and shipments already underway, we continue to demonstrate our relentless focus on execution.”
Thras Moraitis, Chief Executive Officer of USA Rare Earth
“We look forward to expanding Serra Verde’s contribution of these scarce elements with the completion of our second stage of optimization and expansion in 2027.”
Ricardo Grossi, Head of Upstream in Brazil
“Executing on our first commercial product shipment under the Offtake Agreement is a proud moment for everyone at Serra Verde and, indeed, for Brazil.”
Ricardo Grossi, Head of Upstream in Brazil
“It reflects the work of our dedicated and expert team in Brazil and the optimization program we have been executing to scale production and refine our process.”
Ricardo Grossi, Head of Upstream in Brazil
“We are ramping up and the optimized process is performing as we anticipated, with product quality ahead of planned specification, meeting our contractual obligations.”
Ricardo Grossi, Head of Upstream in Brazil
“We aim to continuously improve our execution and remain focused on ramping up production and shipments in a sustainable and responsible manner.”
Ricardo Grossi, Head of Upstream in Brazil
“This is an important moment for Brazil, a country which has the potential to play a pivotal role in the global supply of critical minerals, especially rare earths.”
Ricardo Grossi, Head of Upstream in Brazil
“As the first scaled processor of heavy rare earth-rich ionic clays outside Asia, Serra Verde’s processing technology is exclusively home grown – underlining the deep innovation and operational capabilities in Brazil.”
Commenced commercial-scale shipments of mixed rare earth carbonate (MREC) in October and first sales in November, following successful completion of Stage 1 of its optimization and expansion program; production is ramping toward an initial run rate of ~4,000 tpa TREO, targeted for Q2 2027
Shipments are under 15-year, 100% offtake agreement for Phase I production based on non-China reference prices, capturing the current premium for heavy rare earths outside of China, and with guaranteed price floors for Nd, Pr, Dy and Tb
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