Rare Earth Supply Chain Gets Major Boost: Ucore Partners with VAC and eVAC to Strengthen Western World Access

The rare earth element market just got a significant development. Ucore Rare Metals Inc. has signed a Memorandum of Understanding (MOU) with Vacuumschmelze GmbH & Co. KG (VAC) and eVAC Magnetics LLC to establish a long-term collaborative framework for high-purity rare earth oxides (REOs). The partnership was formalized at the G7 Energy and Environment Minister’s Summit, signaling strong governmental backing for this strategic move.

Why This Matters: The Defense and EV Connection

eVAC Magnetics has completed construction of a manufacturing facility in Sumter County, South Carolina—a pivotal moment for North American rare earth production. The facility received substantial support from the U.S. Department of War, including a $111.9 million Qualified Advanced Energy Project Tax Credit, underlining the strategic importance of securing domestic rare earth supply chains.

The partnership addresses a critical gap in Western rare earth production. VAC operates magnet manufacturing sites across Europe that produce neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) permanent magnets, both essential for defense systems (radar, sonar, guidance systems) and automotive/renewable energy applications. eVAC in Sumter, SC will now have guaranteed access to refined rare earth oxides, while Ucore secures a major customer for its planned refining facilities.

The Supply Chain Solution

Under this arrangement, Ucore will supply separated rare earth oxides—including neodymium (Nd), praseodymium (Pr), terbium (Tb), dysprosium (Dy), samarium (Sm), and gadolinium (Gd)—from two facilities: the Louisiana Strategic Metals Complex in Alexandria, Louisiana, and the Commercial Demonstration Facility in Kingston, Ontario. This staged geographic approach allows Ucore to scale production efficiently while meeting both North American and European market demands.

Pat Ryan, Ucore’s Chairman & CEO, emphasized the strategic alignment: “VAC and eVAC bring decades of rare earth permanent magnet expertise and an extensive supply network. By providing critical rare earth oxides through our RapidSX™ refining technology, we’re creating a complete supply chain solution for Europe and North America that positions both companies for sustained growth.”

Dr. Erik Eschen, VAC’s CEO, added: “This partnership strengthens our strategic position in the global rare earth supply chain and ensures long-term access to critical raw materials. It reflects our commitment to sustainable innovation and supply resilience.”

Next Steps and Timeline

The parties will negotiate the structure and commercial terms for a definitive long-term agreement within nine months, with regular progress reviews to track development. This MOU paves the way for a formal offtake agreement once commercial terms align.

Ucore’s recent funding trajectory supports execution confidence—the company received an $18.4 million follow-on award from the U.S. Department of Defense in 2025, bringing total funding under its current agreement to $22.4 million. This funding underscores government commitment to building reliable domestic rare earth refining capacity independent of traditional supply sources.

The partnership represents a pivotal step toward a resilient Western rare earth supply ecosystem.