Vacuumschmelze GmbH & Co. KG, the century-old German advanced magnetics manufacturer known as VAC, is the subject of a $1.9 billion acquisition agreement with Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR), announced 23 June 2026 and not yet completed. VAC currently remains owned by Ara Partners, the US private equity firm that acquired the company in 2023.
Vacuumschmelze Company Overview
Founded in Hanau, Germany in 1923, VAC has more than a century of production history, over 400 patents, and more than 1,000 customers across aerospace, defence, automotive and industrial markets. The company produces three core product lines: permanent magnets in NdFeB and SmCo formulations across 170-plus specialised alloys, inductive components including transformers and common-mode chokes, and soft magnetic materials such as ribbons and shielding alloys. VAC operates magnet production facilities across North America, Europe and Asia.
Vacuumschmelze remains under Ara Partners ownership at the time of writing. Ara, a US private equity firm focused on industrial decarbonisation, has agreed to sell 100% of VAC to Energy Fuels under a definitive agreement, but the transaction has not closed. Full deal background is available via Energy Fuels investor relations.
Key Assets & Operations
VAC’s most significant North American asset is its Sumter, South Carolina facility, currently producing 2,000 tonnes per annum (tpa) of NdFeB magnets, with a stated expansion pathway to 12,000 tpa. The Sumter site is compliant with the Defense Federal Acquisition Regulation Supplement (DFARS) and holds a contract with the US Defense Logistics Agency to supply NdFeB magnet blocks for the national defence stockpile, with production scheduled to begin in 2026.
VAC’s legacy business generated $29 million in adjusted EBITDA in 2025, with its 2026 order book up more than 20% year on year. Customers include General Motors alongside a broad base of aerospace, defence and automotive industrial buyers, supplying magnets and components for EV drive motors, wind turbine generators, aerospace and defence guidance systems, and robotics and AI data centre infrastructure.
Latest Projects & Developments
Under the definitive agreement announced 23 June 2026, Energy Fuels has agreed to acquire 100% of VAC from Ara Partners for total consideration of approximately $1.9 billion: $718 million in cash plus 65.853 million newly issued Energy Fuels shares (valued at $16.12 per share, based on the 22 June 2026 closing price). Energy Fuels will also assume approximately $140 million of VAC’s adjusted net debt. The Energy Fuels board has unanimously approved the transaction; Goldman Sachs advised Energy Fuels and Jefferies advised VAC.
The deal is targeted to close in early 2027, subject to customary closing conditions including foreign investment, antitrust, and other regulatory approvals. It has not closed as of this profile’s publication, and VAC’s ownership remains with Ara Partners pending that approval process. Once completed, VAC will become a wholly owned Energy Fuels subsidiary while retaining its existing brand, corporate identity, and Hanau headquarters.
The strategic rationale centres on building an integrated Western “mine-to-magnet” rare earth supply platform: monazite feedstock from the Donald Project in Australia (targeting a positive final investment decision in Q3 2026, with commissioning in 2028), separation at Energy Fuels’ White Mesa Mill in Utah following a planned Phase II expansion, and final magnet production at VAC’s Sumter facility. The plan is designed to complement Energy Fuels’ separately announced, pending acquisition of Australian Strategic Materials, which would add rare earth metals and alloys capacity in South Korea.
Vacuumschmelze in the Global REE Market
If completed, the VAC acquisition would position the combined Energy Fuels-VAC group among the largest non-Chinese producers of rare earth permanent magnets, directly addressing Western efforts to reduce dependence on Chinese-controlled magnet supply chains. Vacuumschmelze sits within a small group of Western and allied NdFeB magnet manufacturers building out capacity outside China, alongside companies profiled in REM’s Top 10 Rare Earth Magnet Manufacturers ranking, including Noveon Magnetics in the United States. VAC’s distinguishing position is scale and pedigree: more than 1,000 existing customers and a 50-plus-year track record specifically in rare earth permanent magnet production, against newer entrants still scaling capacity. The broader shift this deal represents is covered in REM’s analysis of the Western magnet supply build-out.
Vacuumschmelze Company Snapshot
| Detail | Information |
|---|---|
| Founded | 1923, Hanau, Germany |
| Headquarters | Hanau, Germany |
| Current owner | Ara Partners (acquired 2023); sale to Energy Fuels agreed 23 June 2026, not yet closed |
| Listing status | Private; pending acquisition by Energy Fuels (NYSE American: UUUU; TSX: EFR) |
| Key products | NdFeB and SmCo permanent magnets, inductive components, soft magnetic materials |
| Flagship North American facility | Sumter, South Carolina (2,000 tpa, scalable to 12,000 tpa) |
| 2025 adjusted EBITDA (legacy business) | $29 million |
What does Vacuumschmelze (VAC) produce?
Vacuumschmelze produces rare earth permanent magnets (NdFeB and SmCo formulations), inductive components such as transformers and common-mode chokes, and soft magnetic materials including ribbons and shielding alloys, serving aerospace, defence, automotive and industrial customers.
Where are Vacuumschmelze’s main operations?
VAC is headquartered in Hanau, Germany, and operates magnet production facilities across North America, Europe and Asia. Its largest North American site is in Sumter, South Carolina, a key facility within the Western rare earth magnet supply chain.
Is Vacuumschmelze owned by Energy Fuels?
No. Energy Fuels has agreed to acquire 100% of Vacuumschmelze from Ara Partners under a definitive agreement, but the transaction has not closed and remains subject to regulatory approval. VAC’s current owner of record is Ara Partners. See the article body for the latest status of the proposed acquisition.
What is Vacuumschmelze’s role in the rare earth supply chain?
VAC sits at the magnet-production end of the rare earth value chain, converting separated rare earth metals and alloys into finished permanent magnets. Its proposed integration with Energy Fuels is intended to connect mining, processing and magnet manufacturing under a single Western-owned platform.
What is Vacuumschmelze’s defence industry role?
VAC’s Sumter, South Carolina facility is compliant with the Defense Federal Acquisition Regulation Supplement (DFARS) and holds a contract with the US Defense Logistics Agency to supply NdFeB magnet blocks for the national defence stockpile.
