upply to VAC supports US magnet manufacturing

Ucore rare earth

Ucore rare earth supply to VAC will underpin a new US magnet manufacturing hub in South Carolina. The Ucore rare earth supply to VAC centres on separated oxides from Ucore’s Louisiana and Ontario facilities for eVAC’s Sumter County plant. As a result, the Ucore rare earth supply to VAC strengthens a non-Chinese supply chain for critical magnet materials.

Building a North American rare earth magnet value chain

Ucore will supply neodymium, praseodymium, terbium, dysprosium, samarium and gadolinium oxides to VAC and its subsidiary eVAC. These separated rare earth oxides will feed eVAC’s new permanent magnet facility in Sumter County, South Carolina. The plant targets high-performance magnet demand from EVs, wind turbines and defense systems.

The deal leverages Ucore’s planned Louisiana Strategic Metals Complex and its Commercial Demonstration Facility in Ontario. These assets aim to become key separation hubs for non-Chinese mixed rare earth concentrates. VAC, a leading German magnet producer, gains secure North American feedstock close to downstream customers.

Feedstock security through diversified offtake agreements

Ucore has been assembling a diversified pipeline of rare earth feedstock ahead of Louisiana SMC commissioning. It previously signed an agreement with Australia’s Metallium to potentially secure mixed rare earth concentrate. Ucore also has a non-binding offtake with US developer Critical Metals for 10,000 t/yr of rare earth concentrate.

These arrangements reduce single-source risk and improve resilience against geopolitical disruptions. Meanwhile, VAC’s US investment aligns with government efforts to localise permanent magnet production for EV and defense supply chains. Both parties now have nine months to finalise long-term commercial terms, including volumes, pricing structures and potential take-or-pay elements.

The Metalnomist Commentary

This Ucore–VAC alignment is a textbook example of how midstream separation and downstream magnet capacity are finally linking up in North America. The success of Louisiana SMC and eVAC’s Sumter County plant will be a key test of whether non-Chinese rare earth supply chains can scale fast enough to meet accelerating magnet demand.