Energy Fuels to acquire German magnet maker Vacuumschmelze in $1.9 billion deal

DENVER — Energy Fuels Inc. has agreed to acquire German magnet manufacturer Vacuumschmelze GmbH & Co. KG, known as VAC, in a transaction valued at approximately $1.9 billion, creating a vertically integrated rare earth mining and magnet production company.

The Denver-based company said the acquisition links its rare-earth mining, processing and refining operations with VAC’s permanent magnet manufacturing business, which serves customers in the automotive, defense, aerospace, robotics and data center sectors.

VAC operates magnet production facilities in North America, Europe and Asia, including a plant in Sumter, South Carolina, with annual capacity of 2,000 metric tons of permanent magnets and expansion potential to 12,000 metric tons. The company has more than 1,000 customers and has produced more than 1 billion rare-earth permanent magnets over the past decade.

“This is a transformational moment for Energy Fuels and the global rare earth supply chain,” said Ross Bhappu, president and chief executive officer of Energy Fuels. “Together with VAC, we will strengthen global rare earth and magnet supply chains, providing a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets.”

The acquisition also complements Energy Fuels’ planned purchase of Australian Strategic Materials Ltd., which would add rare earth metals and alloys production capacity in South Korea and support plans for a future U.S. metals facility.

Energy Fuels said VAC generated $29 million in adjusted EBITDA in 2025 and that its 2026 order book has grown by more than 20%. The company estimates its South Carolina facility could generate between $65 million and $75 million in annual EBITDA at its current production capacity.

The combined company expects to benefit from growing demand for rare-earth magnets used in electric vehicles, defense systems, semiconductors, industrial automation and data centers. Energy Fuels said demand for neodymium-iron-boron magnets in North America and Europe is expected to increase by more than 50% over the next decade.

The transaction includes $718 million in cash and approximately 65.9 million newly issued Energy Fuels shares. Energy Fuels will also assume about $140 million in adjusted net debt held by VAC.

Following the acquisition, VAC will operate as a wholly owned subsidiary of Energy Fuels and retain its headquarters in Hanau, Germany.

The company recently received a conditional commitment for up to $725 million from the U.S. Office of Strategic Capital to support the expansion of its White Mesa Mill in Utah and the construction of a planned U.S. rare earth metals facility.

The acquisition is expected to close in early 2027, subject to regulatory approvals and other customary closing conditions.