Department of War announces $750m investment to secure critical rare earths from Serre Verde as part of $1.55bn initiative

The Department of War’s Economic Defense Unit, in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy, announced a $750 million investment with US SIIE, LLC through the Industrial Base Analysis and Sustainment program to support an offtake agreement for mixed rare-earth carbonates produced at Serra Verde’s Pela Ema Project in central Brazil. The move is intended to establish a secure supply chain for rare-earth elements critical to national defense and economic security.

The $750 million commitment is part of a broader $1.55 billion investment structure mobilized by the Economic Defense Unit that includes a $300 million purchase commitment from the Defense Logistics Agency and a $500 million commitment from a money-center bank.

“Securing resilient domestic and allied supply chains is a fundamental warfighting requirement,” said HON Mike Cadenazzi, Assistant Secretary of War for Industrial Base Policy. “By partnering with Serra Verde, we are taking a decisive step to break our adversaries’ near-monopoly on rare-earth elements. This collaborative effort ensures that our defense industrial base has the guaranteed, long-term access to the critical materials needed to manufacture next-generation weapons systems and maintain our technological edge.”

The initiative addresses an over-dependence on China for rare-earth elements. Once fully operational, it is expected to secure a large supply of Dysprosium, Terbium, Neodymium, and Praseodymium, support emerging U.S. magnet manufacturing capabilities, and bypass Chinese supply chain dominance. The deal follows a DFC financing agreement with Serra Verde for a $565 million loan to optimize and expand the Pela Ema Project and aligns with Department of Commerce efforts to establish a non-Chinese mine-to-magnet value chain.

“This historic $1.55 billion investment is a major step towards securing one of the most vital supply chains for our warfighters and our economy,” said George K. Kollitides II, Director of the Economic Defense Unit. “By ensuring reliable access to these critical rare-earth elements, we are protecting the production of everything from fighter jets and nuclear submarines to the energy infrastructure and commercial technology that power our modern world.”

Rare-earth elements are necessary to improve the thermal stability and magnetic strength of neodymium-iron-boron magnets used in critical defense systems, including nuclear submarines, fighter jets, satellites, guided missiles, combat vessels, and drones. Beyond defense, these materials underpin energy infrastructure, transportation, aerospace, and electronics across the broader economy.