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00:02USA Rare Earth announced plans to acquire Brazil-based Cerro Verde in a $2.8 billion cash
00:09and stock deal as it seeks to challenge China's dominance in the rare earth supply chain,
00:14according to CNBC. The company will pay $300 million in cash and $126.9 million in newly
00:22issued stock and expects to close the deal in the third quarter of 2026, subject to approvals.
00:28Rare earths have become a key point of leverage in the geopolitical rivalry between the U.S.
00:34and China, which produces nearly 70% of the mined supply and almost 90% of refined output.
00:41Western officials view China's dominance as a strategic risk as demand for critical
00:45minerals rises with the clean energy transition. The acquisition provides access to a producing
00:50mine supplying four magnetic rare earth elements tied to a 15-year offtake agreement covering 100%
00:56of output. Shares fell 3.4% in pre-market trading on Monday, but remain up about 68% year
01:03-to-date.
01:03For all things money, visit Benzinga.com.
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