Energy Fuels strikes $1bn deal for German magnet maker to build mine-to-magnet supply chain
Colorado-based Energy Fuels said on Tuesday it would acquire German magnet manufacturer Vacuumschmelze for about $1.9-billion in cash and stock, building an integrated supply chain from rare earth mine to finished magnet for defense, automotive and technology customers.
Under the agreement, Energy Fuels will acquire 100% of Vacuumschmelze, known as VAC, from US-based private equity firm Ara Partners for $718-million in cash and 65.853-million newly issued Energy Fuels common shares.
Energy Fuels said the deal would combine its rare earth mining and processing operations with VAC's magnet manufacturing capabilities, creating a supply chain it controls from mine to finished magnet.
Last week, Energy Fuels received a conditional commitment for up to $725-million from the US Office of Strategic Capital, a 20-year loan aimed at accelerating the planned expansion of the White Mesa Mill in Utah and the construction of the American Metals Plant.
"Together with VAC, we will strengthen global rare earth and magnet supply chains, providing a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets," said Energy Fuels CEO Ross Bhappu.
Following completion of the transaction, which is expected to close in early 2027, VAC will become a wholly owned subsidiary of Energy Fuels.
Shares of Energy Fuels fell 6.2% in premarket trading.
The US and Europe are working to secure supplies of critical minerals and reduce dependence on China, which dominates global rare earth mining, processing and magnet manufacturing.
Rare earth magnets are used in electric vehicles, defense systems, robotics, semiconductors and data centers.
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