en.Wedoany.com Reported - Energy Fuels Inc. has announced the acquisition of Vacuumschmelze GmbH & Co. KG (VAC) for $1.9 billion, comprising $718 million in cash and 65.853 million newly issued shares, aiming to create an integrated rare earth and magnet supply chain platform.
VAC operates four production sites and serves over 1,000 customers, including the largest permanent magnet manufacturing facility in the United States, located in Sumter, South Carolina. The facility currently has an annual capacity of 2,000 tons, with the potential to expand to 12,000 tons per year.
VAC complies with the Defense Federal Acquisition Regulation Supplement (DFARS) standards and has secured a contract with the Defense Logistics Agency to produce neodymium-iron-boron magnet blocks for the U.S. defense stockpile, with production slated to begin in 2026.
The combined company will cover the entire rare earth element value chain, including raw material supply from the Donald Project in Australia, processing at the White Mesa Mill in Utah, metal and alloy production facilities, and VAC's permanent magnet manufacturing plants in Europe and the United States.
Energy Fuels has set several growth milestones: a final investment decision (FID) for the Donald Project by early Q3 2026, completion of the White Mesa Mill upgrade by the end of 2027, closure of the VAC acquisition by early 2027, and expansion of rare earth separation capacity by mid-2029.
Energy Fuels Inc. is a U.S. critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium, and medical isotopes. The company owns and operates conventional and in-situ leach uranium projects in the western United States and has been a leading producer of natural uranium concentrate in the U.S. over the past few years. It also owns the White Mesa Mill in Utah, the only fully licensed and operational conventional uranium processing facility in the United States. Energy Fuels is developing three heavy mineral sand projects: the 100%-owned Vara Mada project in Madagascar, the Bahia project in Brazil, and the Donald Project in Australia, where the company has the right to acquire up to a 49% interest in a joint venture with Astron Limited.
Upon completion of the transaction, Energy Fuels will acquire VAC for $718 million in cash and 65.853 million newly issued common shares, representing an equity value of $1.9 billion based on a closing price of $16.12 per share. Energy Fuels will assume $140 million of VAC's adjusted net debt as of March 31, 2026. If Energy Fuels' share price falls below $20.93 per share at closing, Ara Partners will receive Energy Fuels preferred shares with a total value of up to $135 million. The transaction is targeted for completion in early 2027, subject to foreign investment, antitrust, and other government approvals.
Goldman Sachs & Co. LLC has provided a $250 million term loan facility commitment to support the refinancing of a portion of VAC's existing debt, subject to customary conditions, and has delivered a fairness opinion to Energy Fuels' board of directors, which has unanimously approved the transaction.
Ross Bhappu, President and CEO of Energy Fuels, stated that this acquisition is a transformative moment for the company and the global rare earth supply chain, and that the merger of the two companies will strengthen the global rare earth and magnet supply chain, providing a reliable source of critical materials from mine to high-value permanent magnets.
VAC is a century-old magnet manufacturer with over 400 patents, operating four production sites in Hanau, Germany; Ulvila, Finland; Horná Streda, Slovakia; and Sumter, South Carolina, serving more than 1,000 customers. The Sumter facility is the largest permanent magnet plant in the United States, with a current annual capacity of 2,000 tons, expandable to 12,000 tons per year. Approximately 85% of VAC's products are manufactured to customer specifications. VAC complies with DFARS standards and has secured a contract with the Defense Logistics Agency to supply neodymium-iron-boron magnet blocks for the defense stockpile, with production set to begin in 2026.
Dr. Erik Eschen, President and CEO of VAC, noted that this transaction solidifies VAC's position as a cornerstone of a resilient and reliable permanent magnet supply chain, and that joining forces with Energy Fuels provides the team, technology, and customers with a fully integrated supply chain platform from mine to finished magnets.
Financially, VAC achieved adjusted EBITDA of $29 million in fiscal year 2025, with order book growth of over 20% year-over-year in 2026. At the Sumter facility's current annual capacity of 2,000 tons, the target annualized adjusted EBITDA is $65 million to $75 million; if expanded to 4,000 tons per year, the target is approximately $130 million to $140 million; and at maximum capacity of 12,000 tons per year, the target is approximately $400 million. The company stated that VAC's cash flow will be used to fund the Phase 2 expansion of the White Mesa Mill, the Donald Project, and the planned U.S. metal and alloy facility.
The combined company's platform covers four stages of the rare earth element value chain: raw material supply from the Donald Project in Australia, which targets a positive FID by early Q3 2026 and production in 2028; processing and separation at the White Mesa Mill, with the upgrade targeted for completion by the end of 2027; metal and alloy production at Australian Strategic Materials (ASM)'s Korean metal plant and the planned U.S. metal and alloy facility, subject to ASM's closing conditions; and permanent magnet manufacturing at VAC's European plants and the Sumter facility.
Energy Fuels' planned Phase 2 expansion of the White Mesa Mill aims to increase separation capacity to up to 6,000 tons of neodymium-praseodymium oxide, approximately 288 tons of dysprosium oxide, and 80 tons of terbium oxide per year by mid-2029. The company also holds a target loan package of A$220 million under discussion with Export Finance Australia and other lenders for the Donald Project, while VAC has already received a $41 million grant from the U.S. Department of War to build a metal manufacturing facility in the United States.
Upon completion of the transaction, assuming the ASM acquisition proceeds as planned, Ara Partners will hold 19.9% of Energy Fuels' issued basic shares and will have the right to nominate one director to the board. VAC will become a wholly owned subsidiary of Energy Fuels and will retain its brand and headquarters in Hanau, Germany.
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