Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has entered into a definitive agreement to acquire Germany-based Vacuumschmelze GmbH & Co. KG and affiliated entities, collectively known as 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.
This deal is significant because it addresses a critical vulnerability in Western supply chains: the overwhelming dependence on China for rare earth elements and permanent magnets. Rare earth magnets are essential components in electric vehicles, wind turbines, drones, and advanced military systems. By integrating VAC’s advanced magnetics capabilities with Energy Fuels’ upstream mining and processing assets, the combined entity will provide a secure, domestic supply of these strategic materials. For the industry, this could reduce supply chain risks and price volatility, while for national security, it lessens reliance on foreign sources for defense-related technologies.
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. With several uranium projects in the western United States, Energy Fuels has been the top U.S. producer of natural uranium concentrate, supplying nuclear utilities. 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 Toliara Project in Madagascar, Bahia Project in Brazil, and Donald Project in Australia (through a joint venture with Astron Limited).
The acquisition of VAC, combined with Energy Fuels’ existing assets and planned acquisition of Australian Strategic Materials, will create a vertically integrated rare earth supply chain that is rare in the Western world. As governments and industries seek to secure critical minerals, this move positions Energy Fuels as a key player in the global transition to clean energy and advanced manufacturing. The deal underscores the growing importance of rare earth elements and the strategic imperative to develop non-Chinese supply sources.
