en.Wedoany.com Reported - Merger and acquisition activity in the global critical minerals sector is accelerating. In its mid-year report, Goldman Sachs noted that companies are adopting a "mine-to-magnet" integration strategy to address surging demand driven by artificial intelligence, electric vehicles, and the energy transition, while ensuring supply chain security.
The report shows that as demand for rare earths and other critical minerals continues to grow with technological advancement, related investment and financing activities are also increasing. Andrew Timbers and Nicholas Smith, Co-Heads of Americas Metals & Mining at Goldman Sachs Banking & Markets, stated that M&A, initial public offerings (IPOs), and U.S. government investment are all accelerating as the United States seeks to close the supply chain gap with China, the current global leader in critical mineral supply and processing.
In 2026, copper prices have repeatedly hit record highs, rising more than 30% year-over-year, and are expected to remain a strong long-term theme in the mining industry. The construction of AI data centers is one of the key drivers. Timbers noted that a single gigawatt-scale data center could require up to 50,000 tonnes of copper for cabling and grid upgrades, but demand is not limited to copper—other minerals such as lithium and rare earths are also critical components.
Smith said that the rapid expansion of electrification and data centers has made competition among miners for high-quality copper projects "white-hot." "Developing a new copper mine can take 15 years or more from discovery to production," he said. "Acquiring existing projects or junior developers is the fastest way for mining giants to meet demand. We expect consolidation and M&A activity to continue as major miners attempt to acquire smaller operators."
The pace of consolidation in the copper industry is accelerating. The merger between Teck Resources (NYSE:TECK) and Anglo American (LSE:AAL) is expected to be completed between September 2026 and March 2027, creating a global copper producer with more than 70% copper exposure. The combined business will encompass copper, iron ore, and zinc assets, along with a portfolio of brownfield and greenfield copper development projects in established mining jurisdictions.
At the end of June 2026, Hudbay Minerals (TSX:HBM) completed its acquisition of Arizona Sonoran Copper through a court-approved plan of arrangement, with the two companies stating the deal would create the third-largest copper mining district in North America. Hudbay said the acquisition strengthens its strategic position in the United States, with the Cactus project in Arizona expected to become a major producer of cathode copper, making Hudbay one of the few operators capable of producing refined copper domestically in the U.S. and supporting the country's critical minerals supply chain.
More recently, Evolution Mining (ASX:EVN) announced the acquisition of Carnaby Resources (ASX:CNB) for approximately A$213 million, adding the latter's advanced Greater Duchess copper-gold project to its regional copper growth pipeline.
While copper M&A momentum remains strong, the rare earth industry is also facing sustained demand growth. The drive to diversify supply chains outside China and expand downstream processing, magnet manufacturing, and separation capabilities remains robust. Timbers noted that companies are actively pursuing "mine-to-magnet" strategies to capture downstream value and bypass complex processing bottlenecks. This has triggered a wave of strategic M&A and joint ventures, some of which are strongly supported by Western governments, specifically targeting heavy rare earths such as dysprosium and terbium, which are affected by tightened export controls. "The goal is clear: build a fully integrated, resilient supply chain to support and secure the domestic industrial base."
The mine-to-magnet strategy vertically integrates mining, separation, metallization, and magnet manufacturing across the value chain, enabling developers to capture higher margins through downstream operations while bypassing midstream bottlenecks. Timbers said this vertical integration is reshaping project financing. "Given the high capital expenditure required for midstream refining, developers are increasingly leveraging public-private financing structures," he said. "We are seeing deals involving traditional private equity plus government support, as well as strategic offtake agreements that include price support mechanisms to mitigate market volatility." He noted that M&A transactions are being financed through a combination of common equity, cash, and structured equity.
In April 2026, USA Rare Earth (NASDAQ:USAR) announced it had reached a definitive agreement to acquire 100% of Serra Verde Group, owner of the Pela Ema rare earth mine and processing plant in Brazil. The consideration includes $300 million (A$428 million) in cash and 126.849 million newly issued shares of USAR common stock, representing a total equity value of approximately $2.8 billion.
Serra Verde is expected to produce approximately 6,400 tonnes of total rare earth oxides per year. In February 2026, the company secured a $565 million financing package from the U.S. International Development Finance Corporation (DFC) to fund expansion plans, and signed a 15-year, 100% offtake agreement to supply products to a special purpose entity funded by a mix of U.S. government entities and private capital. The company expects to account for more than 50% of heavy rare earth element production outside China by 2027. The Pela Ema mine and processing plant also plans to contribute to the global rare earth supply chain through processing, separation, metallization, and magnet manufacturing.
Energy Fuels (TSX:EFR) announced in June 2026 that it had reached a definitive agreement to acquire Vacuumschmelze (VAC) in an all-cash-and-stock transaction valued at $1.9 billion, creating a fully integrated rare earth supply chain platform that combines its upstream rare earth assets with VAC's downstream magnet manufacturing expertise. Meanwhile, Energy Fuels is advancing its proposed acquisition of Australian Strategic Materials (ASX:ASM), which is pending shareholder approval and would provide commercial-scale rare earth metal and alloy production capacity in South Korea upon completion. These transactions position Energy Fuels to expand its capabilities across the rare earth value chain, spanning Australian mines, processing and separation at its White Mesa facility in the U.S., metal and alloy production in South Korea, and magnet manufacturing at its Sumter facility in the U.S.
The accelerating pace of copper and rare earth M&A underscores how mining companies and junior explorers are repositioning for AI-driven infrastructure growth and the broader energy transition. As major miners acquire assets in stable jurisdictions and vertically integrate supply chains, deal activity is expected to remain robust beyond 2026.
