Energy Fuels announced that it has entered into a definitive agreement to acquire 100% of Vacuumschmelze GmbH & Co. KG, Ara VAC TopCo US LLC, and their respective consolidated subsidiaries from Ara Partners.
The transaction has an equity value of approximately $1.9 billion based on Energy Fuels’ closing share price of $16.12 as of June 22, 2026. The acquisition will create a fully integrated mine-to-magnet rare earth platform designed to strengthen global critical rare earth element supply chains.
VAC is an advanced magnetics company with more than 100 years of production expertise, over 400 patents, more than 1,000 customers, and magnet production facilities in North America, Europe, and Asia. The company operates a state-of-the-art facility in Sumter, South Carolina, with capacity to produce 2,000 tonnes per year of permanent magnets and a pathway to scale to 12,000 tonnes per year.
Over the last decade, VAC has produced and shipped more than 1 billion rare earth permanent magnets. Its product portfolio includes permanent magnets, including sintered neodymium-iron-boron and samarium-cobalt magnets, as well as soft magnetics such as amorphous and nanocrystalline alloys, cobalt-iron products, and nickel-iron products.
The transaction combines Energy Fuels’ upstream rare earth assets, including mining projects and existing separation capacity, with VAC’s downstream rare earth magnet manufacturing expertise. The combined company is expected to serve customers across North America, Europe, and Asia in sectors such as automotive, aerospace and defense, robotics, data centers, electronics, semiconductors, and industrial automation.
Energy Fuels said the transaction also complements its planned acquisition of Australian Strategic Materials. If completed, that acquisition would add commercial-scale rare earth metals and alloys capacity in South Korea, along with plans for a new metals and alloys facility in the U.S.
Following the closing of the VAC transaction, VAC will become a wholly owned subsidiary of Energy Fuels and will retain its branding and historic identity. VAC will also maintain its headquarters in Hanau, Germany. Energy Fuels said VAC’s technology base, engineering expertise, manufacturing footprint, and customer relationships will remain critical to the combined company.
The deal is expected to be immediately accretive to Energy Fuels’ cash flow and margin profile. VAC’s legacy business generated $29 million of adjusted EBITDA in 2025 and has seen more than 20% year-over-year growth in its order book for 2026.
The Sumter facility is expected to generate between $65 million and $75 million of annual run-rate EBITDA once production reaches its current capacity of 2,000 tonnes per year. The facility was built to be expanded to 4,000 tonnes per year without disrupting current capacity, which Energy Fuels said could increase annual run-rate EBITDA to approximately $130 million to $140 million. If the facility scales to 12,000 tonnes per year, it could generate approximately $400 million in annual run-rate EBITDA.
Energy Fuels said VAC’s permanent magnet customer pipeline represents more than $2 billion in potential annual revenue across automotive, defense, robotics, data center, semiconductor, and industrial applications. VAC has also secured a contract with the Defense Logistics Agency to supply neodymium-iron-boron blocks for the national defense stockpile, with production expected to start in 2026.
The Sumter facility is expected to become an important part of Energy Fuels’ mine-to-magnet platform. Energy Fuels expects the facility’s current 2,000-tonne-per-year capacity to be supported by rare earth oxides extracted from monazite mined at the Donald Project in Australia. The Donald Project is expected to receive a positive final investment decision in early third quarter 2026 and be commissioned in 2028.
Energy Fuels plans to process monazite from the Donald Project into separated rare earth oxides at its White Mesa Mill in Utah, where upgrades are expected to be completed by the end of 2027. Subject to completion of the ASM acquisition, those oxides are expected to be converted into rare earth metals and alloys at ASM’s Korean Metals Plant and then used to make permanent magnets at VAC’s Sumter facility.
Energy Fuels’ planned Phase II expansion of the White Mesa Mill is expected to increase separation capacity to up to 6,000 tonnes per year of neodymium-praseodymium oxide, about 288 tonnes per year of dysprosium oxide, and 80 tonnes per year of terbium oxide by mid-2029.
Energy Fuels has received a conditional commitment for up to $725 million from the U.S. Office of Strategic Capital. The 20-year loan is intended to accelerate the planned expansion of the White Mesa Mill and construction of the American Metals Plant. Energy Fuels and its joint venture partner Astron Limited are also progressing discussions with Export Finance Australia and other lenders for a targeted A$220 million lending package to support Phase 1 of the Donald Project.
VAC also holds an existing $41 million grant from the U.S. Department of War to support the buildout of a metal-making facility in the U.S., which is expected to benefit the combined company.
Under the terms of the definitive agreement, Energy Fuels will acquire VAC for $718 million in cash and 65.853 million newly issued Energy Fuels common shares. As of March 31, 2026, VAC had $140 million of adjusted net debt on its balance sheet, which Energy Fuels will assume.
After accounting for the planned ASM acquisition, Ara Partners is expected to own 19.9% of Energy Fuels following the close of the VAC transaction. Ara will have the right to nominate one director to Energy Fuels’ board of directors and will be subject to customary lockup and standstill restrictions.
Energy Fuels has obtained a $250 million term loan financing commitment from Goldman Sachs to support the refinancing of certain VAC debt, subject to customary conditions. The transaction is expected to close in early 2027, subject to customary closing conditions and regulatory approvals, including foreign investment, antitrust, and other government approvals.
Goldman Sachs is acting as exclusive financial advisor to Energy Fuels. Dentons Canada, Dorsey & Whitney, and Herbert Smith Freehills Kramer are acting as legal counsel to Energy Fuels. Jefferies is acting as exclusive financial advisor to VAC, and Latham & Watkins is acting as legal counsel.
KEY QUOTES:
“This is a transformational moment for Energy Fuels and the global rare earth supply chain.”
“Together with VAC, we will strengthen global rare earth and magnet supply chains, providing a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets. In addition, VAC’s rapid solidification and crystalline businesses provide a soft-magnetics platform that is expected to result in greater scale, broader customer reach and enhanced ability to invest in innovation, manufacturing and growth. The combination of our two companies provides enhanced shareholder value and positions Energy Fuels as a leading, secure and trusted supplier for critical materials that are essential for national security and the safety and integrity of Western supply chains.”
Ross Bhappu, President and CEO of Energy Fuels
“For over a century, VAC has been at the forefront of advanced magnetics and pioneering critical materials.”
“This transaction reinforces VAC as the cornerstone of a resilient and reliable permanent magnet supply chain, which is essential for alternative energy development, industrial competitiveness and national security. Joining forces with Energy Fuels gives our team, our technology, and our customers something that no other Western platform can offer today: a fully integrated supply chain platform from mine to finished magnet. With Energy Fuels’ proven upstream capabilities and VAC’s downstream expertise, proprietary IP, and the state-of-the-art Sumter Facility, we will be uniquely positioned to serve rapidly growing demand across various sectors including automotive, aerospace, defense, hyperscale data centers, robotics, semiconductors and beyond.”
Dr. Erik Eschen, President and CEO of VAC
“Rare earth magnets are essential to both decarbonization and national security, and VAC is a foundational supplier to that critical supply chain.”
“The combination with Energy Fuels gives VAC a fully integrated platform and the resources to meet rapidly growing global demand. Ara is proud to have backed VAC’s growth and intends to remain a committed shareholder, supporting this expanded team as the platform reaches its full potential.”
Troy Thacker, Managing Partner of Ara Partners
