Department of War Announces a $750 Million Investment as Part of a $1.55 Billion Initiative to Secure Critical Rare-Earth Elements From Serre Verde

The Department of War's (DoW) Economic Defense Unit (EDU), in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy (IBP) announced today a $750 million investment with US SIIE, LLC through the Industrial Base Analysis and Sustainment (IBAS) program. These funds will be utilized to support an offtake agreement for mixed rare-earth carbonates (MREC) produced at Serra Verde's Pela Ema Project in central Brazil. This strategic partnership will establish a secure supply chain for rare-earth elements (REE) critical for national defense and economic security.

This $750 million is part of a broader $1.55 billion total investment structure mobilized by EDU, which includes a $300 million purchase commitment from the Defense Logistics Agency (DLA) 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."

This initiative aggressively addresses an over-dependence on China for rare-earth elements. Once fully operational, this project will secure a massive supply of vital elements like Dysprosium, Terbium, Neodymium, and Praseodymium, effectively bypassing Chinese supply chain dominance and supporting emerging U.S. magnet manufacturing capabilities. The deal follows a DFC financing agreement with Serra Verde for a $565 million loan to optimize and expand the Pela Ema Project. These investments work in parallel with the Department of Commerce's 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 (NdFeB) magnets, which are essential for manufacturing critical components for our warfighters. These include advanced systems in nuclear submarines, fighter jets, satellites, guided missiles, combat vessels, and drones. Beyond defense, these high-purity materials are a vital raw material for energy infrastructure, transportation, aerospace, and electronics, making them a cornerstone of a modern, industrial economy.