Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has announced 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.
The deal underscores the strategic importance of securing a domestic supply chain for rare earth magnets, which are crucial for electric vehicles, wind turbines, and military systems. Currently, China dominates the global rare earth processing and magnet production, raising supply chain vulnerabilities for Western nations. By integrating VAC’s 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.
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. 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.
The full press release is available at https://ibn.fm/iebv8. For more information about Energy Fuels, visit their newsroom at http://ibn.fm/UUUU.
