The Economic Defense Unit (EDU)ii88 of the U.S. Department of Defense, referred to by the Trump administration as the U.S. Department of War, announced it will invest $750 million with US SIIE, LLC to support an offtake agreement for mixed rare-earth carbonates produced in central Brazil.
The investment, in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy, will be made through the Industrial Base Analysis and Sustainment (IBAS) program, officials said. The minerals will be produced at Serra Verde’s Pela Ema Project in central Brazil. The partnership will establish a secure supply chain for the rare-earth elements the DoW said are critical for national defense and economic security.
“Securing resilient domestic and allied supply chains is a fundamental warfighting requirement,” Mike Cadenazzi, Assistant Secretary of War for Industrial Base Policy, said. “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.”
Officials said the $750 million investment is part of a larger $1.55 billion package from EDU that will also include a $300 million purchase commitment from the Defense Logistics Agency and a $500 million commitment from a money-center bank.
Officials said the initiative addresses an over-dependence on China for rare-earth elements, and that once operational the project will secure vital elements like Dysprosium, Terbium, Neodymium, and Praseodymium, all of which support the U.S. magnet manufacturing capabilities. The deal follows a $565 million loan with Serra Verde to optimize and expand the Pela Ema project.
“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,” George K. Kollitides II, director of the Economic Defense Unit, said. “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.”