Energy Fuels to Buy VAC in $1.25 Billion Mine-to-Magnet Deal
The acquisition would create a fully integrated rare earth supply chain outside China, securing critical midstream metal and alloy capabilities.
**Energy Fuels (UUUU) agreed to acquire Vacuumschmelze GmbH & Co. KG and its U.S. subsidiary Ara VAC TopCoUS (collectively, VAC) in a $1.25 billion mixed-structure transaction**. The deal marks a pivotal step in Energy Fuels’ strategy to build a vertically integrated rare earth supply chain—from mining to advanced magnet manufacturing—amid rising demand for secure, non-China sources of critical materials.
The transaction structure includes cash and stock, though specific exchange ratios and premium details were not disclosed. The deal is subject to regulatory approvals and customary closing conditions, with an expected close in the first half of 2027.
**Energy Fuels framed the acquisition as a transformative move to capture value across the rare earth value chain.** VAC’s capabilities in rare earth metal and alloy production would complement its existing mining and processing assets, creating a "mine-to-magnet" platform. "This acquisition is a cornerstone of our vision to establish a fully integrated, U.S.-led rare earth supply chain," said Mark Chalmers, President and CEO of Energy Fuels. "VAC’s expertise in metallization and magnet manufacturing will accelerate our ability to deliver high-performance rare earth products to global markets, reducing reliance on China".
VAC, a German-based manufacturer of specialized rare earth metals and alloys, operates a 67,000-square-foot production facility in Hanau, Germany, and serves industries including automotive, aerospace, and defense. The company is one of the few ex-China producers capable of processing rare earth oxides into metals and alloys at scale, a critical link in the magnet supply chain. The acquisition would secure access to VAC’s established customer base and government relationships in the U.S., Europe, and Japan.
**The deal follows a wave of consolidation in the rare earth sector as companies seek to counter China’s dominance.** In November 2025, USA Rare Earth (USAR) completed its acquisition of Less Common Metals (LCM), a leading ex-China rare earth metal and alloy manufacturer, for $100 million in cash and stock. That transaction similarly aimed to secure midstream capabilities, with LCM supplying rare earth metals and strip cast alloys to USAR’s Oklahoma magnet facility. Earlier in 2026, USAR also agreed to acquire Serra Verde Group for $2.8 billion, further expanding its access to magnetic rare earth elements. Meanwhile, Evolution Metals & Technologies (EMAT) has pursued a parallel strategy, scaling its magnet production capacity to 10,000 tons annually through equipment purchases and supply agreements.
**Regulatory and shareholder approvals remain key hurdles for the Energy Fuels-VAC deal.** The companies did not disclose expected accretion or synergy targets but emphasized the strategic importance of integrating VAC’s metal and alloy production into Energy Fuels’ broader platform. The transaction would position Energy Fuels as a leading ex-China producer of rare earth metals and magnets, aligning with U.S. and allied government efforts to diversify critical mineral supply chains.