Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has entered into a definitive agreement to acquire Germany-based Vacuumschmelze GmbH & Co. KG and affiliated entities (collectively, “VAC”) from Ara Partners in a cash-and-stock transaction valued at approximately $1.9 billion. The acquisition is expected to create a fully integrated rare earth supply chain platform spanning mining, processing, metals and alloy production and permanent magnet manufacturing, strengthening Western access to critical materials used in defense, automotive, robotics, data centers and industrial applications.
VAC brings more than 100 years of advanced magnetics expertise, over 400 patents and manufacturing operations across North America, Europe and Asia, including its recently commissioned permanent magnet facility in Sumter, South Carolina. Energy Fuels said the combination, together with its planned acquisition of Australian Strategic Materials Ltd., positions the company to become one of the first Western suppliers with commercial capabilities across the rare earth value chain, from mining and separation through finished magnet production. The transaction is expected to close in early 2027, subject to regulatory approvals and customary closing conditions.
This acquisition addresses a critical vulnerability in Western supply chains: rare earth magnets are essential for electric vehicles, wind turbines, defense systems, and electronics, yet China dominates global production. By integrating VAC’s advanced magnet manufacturing with Energy Fuels’ upstream mining and processing assets, the combined entity aims to offer a secure, non-Chinese source of rare earth magnets. The Sumter, South Carolina facility, which recently began operations, will be a key asset in serving North American customers.
Energy Fuels is a leading U.S. critical materials company specializing in uranium, rare earth elements, heavy mineral sands, vanadium, and the development of medical isotopes. With several uranium projects in the western United States, Energy Fuels has been the top U.S. producer of natural uranium concentrate, supplying nuclear utilities. The Company owns the only fully licensed conventional uranium mill operating in the U.S. – the White Mesa Mill in Utah – where it also produces REE products and evaluates medical isotope recovery for emerging cancer therapies. Additionally, Energy Fuels is developing three heavy mineral sands/rare earths projects: the Vara Mada Project in Madagascar, Bahia Project in Brazil, and Donald Project in Australia (through a joint venture with Astron Limited).
The transaction underscores growing efforts by Western governments and companies to reduce reliance on Chinese rare earth supplies. The U.S. Department of Defense and other agencies have funded projects to build domestic rare earth processing and magnet manufacturing capabilities. Energy Fuels’ acquisition of VAC, along with its pending purchase of Australian Strategic Materials, positions the company to become a major player in this strategic sector. The full press release is available at https://ibn.fm/iebv8.
