Energy Fuels acquires German magnet maker VAC for $1.9 bln

Rare earths and uranium producer Energy Fuels has announced an agreement to acquire German rare earths magnet maker Vacuumschmelze (VAC) in a deal worth approximately $1.9 billion, the company announced on Tuesday June 23.

“This is a transformational moment for Energy Fuels and the global rare earth supply chain,” said Ross Bhappu, president and chief executive of Energy Fuels.

VAC is a leading producer of magnets and magnetic materials. The company produces sintered neodymium-iron-boron permanent magnets (NdFeB), as well as samarium-cobalt (SmCo) magnets.

“For over a century, VAC has been at the forefront of advanced magnetics and pioneering critical materials,” said Erik Eschen, chief executive of VAC.

US government backing for domestic rare earth processing

Energy Fuels received a $725 million conditional loan from the US government on June 18 to support a US-based rare earths separation and metallization facility as well as processing at the company’s White Mesa, Utah, Mill.

E-Vac Magnetics, the US subsidiary of German magnet manufacturer VAC Group, announced in December 2025 that it had shipped its first commercially produced neodymium-iron-boron (NdFeB) permanent magnets from its facility in the southeastern state of South Carolina.

China export controls tighten supply of heavy rare earths

On April 4, China imposed export controls on crucial additives for high-temperature NdFeB magnets – products made from heavy rare earths dysprosium and terbium. Export controls were also put in place on all finished magnets containing heavy rare earths and five other heavy rare earth elements.

A second round of export controls was announced on October 9 for all the heavy rare earth elements not covered in the first round, including holmium, which can be used as a substitute for dysprosium in some magnet applications. These restrictions are due to come into force on November 8.

Supply shortages intensify across critical magnet materials

Export controls have resulted in severe shortages of heavy rare earth materials and high-performance rare earth magnets.

Stay informed, make confident decisions and navigate the dynamic rare earths market with Fastmarkets. Ask about our products today

What to read next
Participants in the zinc concentrate market have been tracking several competing signals in recent weeks.
Seven deals, four federal channels, one goal: in just five weeks, Washington backed a rare earths and magnet supply chain worth over $4 billion combined in an effort to forge its own resilient supply chains.
With steel reinforcing bar (rebar) producer Hybar’s first mill in Osceola, Arkansas, in operation for only nine months, the company announced last week that it had raised $1.1 billion to build a second rebar expansion mill next to the existing one.
New York-headquartered global commodities company Hartree Partners will take the first 330,000 tonnes of copper concentrate from Blue Moon Metals' Nussir project in Norway, Christian Kargl-Simard, the critical metals developer's chief executive officer, told Fastmarkets on Monday July 6.
China’s direct flat steel trade with the EU was already thin, at just 3-5% of total exports, or around 2 million tonnes a year, thanks to years of anti-dumping and countervailing duties. That leaves little room for the bloc’s newly tightened import quotas to inflict much additional direct damage, sources told Fastmarkets.
The subsidiaries of the German FBB producer FOLBB Baiersbronn Frischfaser Karton and Folding Boxboard Eerbeek have filed for the initiation of insolvency proceedings and a suspension of payments.