MethodologyContact usSupportLogin
The plant will produce high-performance NdFeB magnets for electric vehicles and defense applications. It will be constructed on an 85-acre site in the Pocotaligo Industrial Park in Sumter County and is expected to be operational in late fall of 2025.
VAC has concluded an agreement with the US department of defense which will provide $94.1 million for the purchase and installation of manufacturing equipment, technical infrastructure and engineer production lines.
VAC Group confirmed on Thursday night that the South Carolina plant will supply US carmaker GM under a binding long-term supply agreement concluded in January.
According to a previous statement from VAC, the US plant will use locally sourced raw materials to manufacture permanent magnets for a portfolio of EVs, including the Chevrolet Silverado, Blazer and Equinox EVs, the Cadillac Lyriq, the GMC Sierra EV, and the GMC Hummer EV SUV and Pickup.
The binding agreement finalized a Memorandum of Understanding (MoU) announced in December 2021. VAC did not disclose the planned capacity of the magnet plant.
“This project represents a significant commitment by VAC to reshore critical process and product technology,” VAC Group CEO Erik Eschen said.
This latest announcement marks the second large-scale commercial rare earth magnet manufacturing project in the US. US rare earth miner MP Materials began construction last April on a 1,000 tonne per year sintered NdFeB magnet plant in Fort Worth Texas.
Rare earths are the forefront of efforts to develop domestic processing and manufacturing capacity for critical minerals and advanced materials.
Earlier this week, the US House of Representatives Select Committee on Strategic Competition between the US and Chinese Communist Party released a report outlining a large number of recommendations to Congress to strengthen supply chain resiliency.
These include the enactment of the Rare Earth Magnet Manufacturing Production Tax Credit Act (H.R. 2849) to establish a $20 per kg tax credit for light and heavy rare earth magnets manufactured in the US and a $30 per kg credit for US manufactured magnets where 90% of the component materials are produced domestically.
China produces over 80% of the world’s permanent rare earth magnets. The only other large producer is Japan which has a highly developed magnet sector supplying its electronics and automotive industries.
Find out more about the launch of Fastmarkets’ rare earths prices and discover further insights here. Listen to our recent interview about the importance of rare earths with Caroline Messecar and Constantine Constantine Karayannopoulos.