Energy Fuels has agreed to acquire German magnet manufacturer Vacuumschmelze (VAC) in a transaction valued at approximately $1.9 billion, creating a company with operations spanning rare earth mining, processing, metals production and magnet manufacturing.
The acquisition is expected to strengthen Energy Fuels’ position in the global critical minerals sector as governments and industries seek to secure alternative supplies of rare earth materials used in a wide range of strategic technologies.
Acquisition Creates Integrated Rare Earth Business
Under the terms of the agreement, Energy Fuels will acquire VAC from Ara Partners through a combination of cash and newly issued shares.
The companies said the transaction is designed to establish a more integrated supply chain covering multiple stages of rare earth production, from raw material sourcing through to finished magnet manufacturing.
Rare earth magnets are widely used in electric vehicles, renewable energy systems, aerospace equipment, defense technologies, industrial automation and data center infrastructure.
VAC Adds Global Manufacturing Footprint
VAC operates production facilities across Europe, North America and Asia and supplies magnetic materials to more than 1,000 customers worldwide.
Founded more than a century ago, the company has built a substantial portfolio of intellectual property and manufacturing expertise in advanced magnetic materials.
Its operations include a magnet manufacturing facility in South Carolina that currently has capacity to produce approximately 2,000 tonnes of permanent magnets annually, with plans allowing for significant future expansion.
Growing Focus on Supply Chain Security
The acquisition comes amid increasing efforts by Western governments and manufacturers to diversify critical mineral supply chains.
Rare earth elements and permanent magnets have become a strategic priority due to their importance in emerging technologies and national security applications.
Energy Fuels said combining its rare earth assets with VAC’s magnet manufacturing expertise would help support the development of a more resilient supply chain outside traditional production centers.
Support for Industrial and Defense Markets
VAC supplies magnetic materials for a variety of industrial sectors and is among a limited number of producers able to meet certain defense-related procurement requirements.
The company also supports customers operating in transportation, energy, electronics, industrial equipment and defense markets.
The combined company is expected to continue serving VAC’s existing customer base while pursuing growth opportunities in expanding end markets.
Transaction Expected to Close in 2027
The acquisition remains subject to regulatory approvals and other customary closing conditions, with completion anticipated in early 2027.
Following the transaction, VAC will continue operating from its headquarters in Hanau, Germany, while becoming part of Energy Fuels’ broader critical minerals platform.
The deal represents one of the largest recent transactions in the rare earth sector and highlights growing investment in supply chains supporting advanced manufacturing and clean energy technologies.
Source: MiningMagz