Pensana is pleased to enter into an agreement to supply Vacuumschmelze GmbH a leading manufacturer of advanced magnetic solutions, rare-earth permanent magnets, and inductive components. Through its recently commissioned eVAC Magnetics facility in Sumter, South Carolina (“eVAC”), VAC is playing a key role in bolstering domestic rare-earth magnet production in the United States, an effort crucial to America’s national and economic security interests.
Key terms of the MOU include:
A proposed offtake of products from Longonjo including the clean Mixed Rare Earth Carbonate (“MREC”) to meet the deadline of the defense restrictions on rare-earth imports from China in 2027. The proposed offtake would be for an initial five-year period, subject to extension and with pricing to be agreed.
The agreement will support the production by eVAC of 2,000 tonnes per annum of rare earth magnets initially rising to 12,000 tonnes per annum by 2029.
Strategic co-operation to strengthen and secure the global rare earth value chain and explore additional joint opportunities.
Troy Thacker, Executive Chairman of eVAC commented:
“A new partnership between VAC and Pensana is a leap forward in the fight to strengthen and diversify the Western supply chain for rare-earth minerals, and we are grateful for the Trump Administration’s and the U.S. International Development Finance Corporation’s unwavering support and partnership in this effort.
This agreement not only reflects VAC's commitment to building a complete mine-to-magnet supply chain that will meet the growing demands for rare-earth materials but also illustrates how we will do so in a way that bolsters America's national and economic security."
Paul Atherley, Chairman, Pensana commented:
“We are delighted to be able to work with the eVAC team to establish a major mine to magnet supply chain in the US. The Longonjo mine is one of the world’s largest undeveloped rare earth mines and Vacuumschmelze is a global leader in rare earth permanent magnets.
The Longonjo mine is financed, in construction and scheduled for the commencement of production in early 2027 with a 20 year mine life. We are looking at accelerating this production timeline to late 2026 and have committed to a major exploration programme to expand the resource inventory to meet the future demand for electric vehicle, automation and humanoid robots.”
Source: www.pensana.co.uk
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein