Serra Verde aims to diversify its customer base
The Brazilian rare-earth producer Serra Verde currently supplies heavy rare earth elements almost exclusively to Chinese customers. This is set to change, CEO Thras Moraitis announced last December. As part of this strategic shift, long-term supply agreements were renegotiated and are now scheduled to expire at the end of 2026, giving the company greater commercial flexibility.
This new flexibility is already yielding results, including a major investment commitment from the United States. A financing package from the U.S. International Development Finance Corporation (DFC) totals $565 million. In addition, the U.S. government has secured an option to acquire a minority equity stake in the company.
According to a press release, the funds will be used to refinance existing debt on more favorable terms and to further develop Serra Verde’s production facilities in Brazil.
Serra Verde began production at its Pela Ema mine in early 2024, located in the central Brazilian state of Goiás. The deposit contains relatively high concentrations of heavy rare earth elements, which have attracted growing global interest following China’s introduction of export restrictions.
Photo: Leonid Altman via Canva