Energy Fuels to Acquire Rare Earth Magnet Maker VAC for $1.9 Billion
Deal pairs Energy Fuels' mining assets with VAC's magnet manufacturing, including a South Carolina plant targeting up to 12,000 tpa capacity.
US critical materials producer Energy Fuels has signed a definitive agreement to acquire permanent magnet maker Vacuumschmelze in a cash-and-stock deal valued at about $1.9 billion.
What Happened
VAC, headquartered in Hanau, Germany, has produced magnets for more than 100 years and holds over 400 patents. The company's portfolio includes sintered neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) permanent magnets, along with soft magnetic alloys such as amorphous and nanocrystalline materials. Its newest plant in Sumter, South Carolina, can produce 2,000 tonnes per annum of NdFeB magnet block and has a pathway to scale to 12,000 tpa. The acquisition combines Energy Fuels' rare earth mining and processing assets with VAC's magnet manufacturing to create an integrated mine-to-magnet platform spanning North America and Europe.
Why It Matters
NdFeB magnets are essential components in EV traction motors, and the International Energy Agency expects demand for them in North America and Europe to grow by more than 50% over the next decade. The deal would provide a secure and diversified Western source of these critical materials. Combined with Energy Fuels' planned acquisition of Australian Strategic Materials, which would add rare earth metals and alloys capacity in South Korea, the company says it would become the first Western producer capable at every step of the rare earth value chain—from mining and separation through metals, alloys, and finished magnets.
The Bottom Line
"Joining forces with Energy Fuels gives our team, our technology, and our customers something that no other Western platform can offer today: a fully integrated supply chain platform from mine to finished magnet," said Erik Eschen, VAC's President and CEO.
