USA Rare Earth has started shipping mixed rare earth carbonate from Serra Verde’s Pela Ema operations in Goiás, Brazil, to US SIIE LLC, a special purpose vehicle funded by the Pentagon, Mining.com reported. Commercial scale shipments began in October and the first sales are scheduled for this month, under the company’s 15 year, 100 percent take or pay offtake agreement with the US government.
The agreement sets floor prices for the elements used in advanced permanent magnets, at 110 dollars per kilogram for neodymium and praseodymium, 575 dollars for dysprosium and 2,050 dollars for terbium, and pays the company 70 percent of the non-China market price above the floor, less a fixed separation cost. Production at Serra Verde is ramping toward an initial run rate of 4,000 tonnes a year of total rare earth oxides by the second quarter of 2027, with a target of 6,400 tonnes by the end of 2027 and a possible second phase that could double output. USA Rare Earth shares rose 10.8 percent to 8.78 dollars by midday Wednesday in New York, valuing the company at 3.1 billion dollars.