Energy Fuels to Acquire Vacuumschmelze for $1.9 Billion to Create Integrated Rare Earth Supply Chain

Energy Fuels Inc. has entered a definitive agreement to acquire Germany-based magnet manufacturer Vacuumschmelze (VAC) for approximately $1.9 billion in cash and stock. This strategic acquisition aims to establish a comprehensive Western mine-to-magnet supply chain by integrating rare earth mining and processing with downstream magnet production. The deal is significant for the Mining & Metals sector as it positions Energy Fuels as a vertically integrated competitor to Chinese dominance in the critical minerals market.

The $1.9 billion transaction involves Energy Fuels paying $718 million in cash and issuing 65.853 million shares to Ara Partners, the private equity firm currently owning VAC. Expected to close in early 2027, the deal includes the assumption of $140 million in adjusted net debt and will result in Ara Partners holding a 19.9% stake in Energy Fuels. VAC, established in 1923, brings a century of expertise, over 400 patents, and a global manufacturing footprint, including a state-of-the-art facility in Sumter, South Carolina. This plant currently produces 2,000 metric tons of neodymium-iron-boron (NdFeB) magnets annually, with potential expansion to 12,000 metric tons.

This acquisition serves as the final link in a rare earth supply chain that Energy Fuels has been building from its processing hub at the White Mesa Mill in Utah. Unlike competitors that started at either end of the chain, Energy Fuels began in the middle with processing and separation, leveraging its uranium infrastructure to handle monazite sands from Chemours Company operations. The company is currently expanding its separation capacity to include heavy rare earths like terbium and dysprosium, while securing feedstock from global projects in Australia, Madagascar, and Brazil.

The integration is further bolstered by Energy Fuels' planned acquisition of Australian Strategic Materials Ltd. (ASM), which provides the necessary metal and alloy production capabilities. By combining ASM’s Korean and planned American metals plants with VAC’s magnet manufacturing and White Mesa’s oxide production, Energy Fuels will control every stage of the value chain. This mine-to-magnet platform is designed to meet surging demand from the automotive, aerospace, and defense sectors while providing a secure, Western-based alternative to traditional supply routes.