Rare earths miner Serra Verde has secured a $565-million financing package from the US International Development Finance Corporation (DFC).

The financing includes an option for the US government to acquire a minority equity stake in the company and will be used to refinance existing debt and fund operational optimisation at Serra Verde’s Brazilian operations.

The company said the funding would support capacity expansion, lower operating costs and enhance product quality for new markets.

Serra Verde’s operations produce rare earths rich in dysprosium and terbium, which are used in high-tech applications across the automotive, medical, renewable energy, electronics, robotics, defence and aerospace sectors.

The company is targeting an expansion to 6 500 t of total rare earth oxide production by the end of 2027. It said the optimisation project is fully funded, on budget and ahead of schedule.

CEO Thras Moraitis said the financing underscored the company’s strategic importance in global supply chains.

“Today’s announcement is a strong endorsement of Serra Verde’s pre-eminent strategic importance on the global stage. We are very grateful for the support of the US government and look forward to working with them to build new, independent value chains,” Moraitis said.

“We applaud the administration’s decisive and meaningful action in ensuring high-quality suppliers such as Serra Verde are able to achieve scale and to compete. The DFC’s large-scale commitment, of almost $600-million, secures an exciting future for Serra Verde and for many downstream businesses dependent on our rare earths.”

Serra Verde said its Brazilian operations benefit from access to renewable electricity, established infrastructure, skilled labour and favourable geology, with production sourced from a large near-surface ionic clay deposit.

The company produces mixed rare earth carbonate through an integrated mining and processing operation and said the latest investment would underpin long-term supply security for critical industries.