USA Rare Earth Signs 15-Year Offtake Agreement for Brazilian Rare Earths and Commences Deliveries

en.Wedoany.com Reported - On November 9, USA Rare Earth announced that commercial-scale shipments of mixed rare earth carbonate have commenced from its Serra Verde mine and processing facility in Brazil, with sales and cash collection beginning in November. The deliveries are being made to US SIIE, LLC, a procurement entity established with U.S. government funding, under a 15-year take-or-pay offtake agreement covering 100% of Phase 1 production. The project had previously completed Phase 1 production process optimization and capacity expansion modifications, and passed commissioning acceptance, with product quality meeting the requirements of the procurement contract.

The project is located in Minaçu, Goiás State, Brazil, and is built on the Pela Ema ion-adsorption clay deposit, comprising mining and processing facilities primarily producing mixed rare earth carbonate containing neodymium, praseodymium, dysprosium, terbium, yttrium and other elements. Among these, neodymium and praseodymium are the primary raw materials for neodymium-iron-boron permanent magnet materials, while dysprosium and terbium are used to improve the high-temperature resistance of permanent magnets. The processing flow includes ore screening, ion exchange, filter pressing and precipitation, concentration, and final filter pressing to produce a mixed rare earth intermediate product for downstream separation and processing. The project employs dry tailings stacking technology, with a process water recycling rate of approximately 90%.

Following the completion of the Phase 1 optimization works, the company is gradually increasing processing throughput, targeting an operating level of approximately 4,000 tonnes of total rare earth oxide (TREO) per year by the second quarter of 2027. The Phase 2 optimization and capacity expansion works are scheduled for commissioning completion in the third quarter of 2027, at which point the annual operating target will increase to approximately 6,400 tonnes. The focus of both phases includes processing flow optimization, throughput enhancement, and supporting production system improvements. The stated production figures are corporate planning targets and do not represent annual production volumes already achieved.

The 15-year offtake agreement covers 100% of Phase 1 product output and employs a take-or-pay mechanism, with pricing referenced to European, American, and non-Chinese market prices, and sets floor price protections for neodymium, praseodymium, dysprosium, and terbium. The contract floor prices for the four elements are USD 110/kg, USD 110/kg, USD 575/kg, and USD 2,050/kg, respectively; when market reference prices exceed the floor prices, the company is also entitled to 70% of the price upside above the floor, net of agreed separation costs. This arrangement provides a long-term sales channel for Phase 1 products and establishes a stable supply relationship between mine production and downstream rare earth separation and processing.