Energy Fuels Agrees to Buy German Magnet Producer Vacuumschmelze

Energy Fuels announced Tuesday it will purchase the German magnet maker Vacuumschmelze GmbH in a transaction valued at approximately $1.9 billion, paid in cash and stock. The move reportedly establishes full control over a supply chain stretching from rare earth extraction to completed magnets serving defense, automotive and technology clients.

Energy Fuels will pay $718 million in cash and issue 65.853 million new shares. The Denver-based company is acquiring 100% of Vacuumschmelze GmbH, known as VAC, from the U.S. private equity firm Ara Partners. Its shares dropped 6.2% in premarket trading.

The purchase links Energy Fuels' existing rare earth mining and processing assets with VAC's magnet production expertise. Rare earth magnets are essential components in electric vehicles, defense systems, robotics, semiconductors and data centers.

U.S. and European initiatives targeting reduced dependence on China provide strategic context. China dominates global rare earth mining, processing and magnet manufacturing. The resulting business is positioned to deliver a reliable, secure and diversified source of critical materials from mines to finished permanent magnets.

Energy Fuels recently obtained a conditional commitment for up to $725 million from the U.S. Office of Strategic Capital. The 20-year loan is intended to accelerate expansion of the White Mesa Mill in Utah and construction of the American Metals Plant.

The transaction is expected to close in early 2027. VAC will become a wholly owned subsidiary 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," said Energy Fuels CEO Ross Bhappu.