Energy Fuels to Acquire VAC in $1.9 Billion Rare Earth Magnet Supply Chain Deal

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has announced a definitive agreement to acquire Germany-based Vacuumschmelze GmbH & Co. KG and its affiliated entities (collectively, “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. This move strengthens Western access to critical materials used in defense, automotive, robotics, data centers, and industrial applications.

VAC brings over 100 years of advanced magnetics expertise, more than 400 patents, and manufacturing operations across North America, Europe, and Asia, including its recently commissioned permanent magnet facility in Sumter, South Carolina. Energy Fuels stated that 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 acquisition is significant because it addresses a critical gap in the Western supply chain for rare earth magnets, which are essential for electric vehicles, wind turbines, and military systems. Currently, China dominates the global rare earth magnet market, controlling over 90% of permanent magnet production. By integrating VAC’s advanced manufacturing capabilities with Energy Fuels’ upstream mining and processing assets, the combined entity could reduce Western dependence on Chinese supply.

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. 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 rare earth element products and evaluates medical isotope recovery. Additionally, Energy Fuels is developing three heavy mineral sands/rare earths projects: the Vara Mada Project in Madagascar, Bahia Project in Brazil, and Donald Project in Australia (through a joint venture with Astron Limited).

For more details on the announcement, the full press release is available at https://ibn.fm/iebv8. The latest news and updates relating to Energy Fuels can be found in the company’s newsroom at http://ibn.fm/UUUU.