Ucore signs MOU with Vacuumschmelze, eVAC

Executive Summary

• Ucore Rare Metals Inc. has signed a memorandum of understanding (MOU) with Vacuumschmelze GmbH & Co. KG (VAC) and eVAC Magnetics LLC to develop a collaborative supply agreement for high-purity rare earth oxides (REOs).
• The partnership aims to secure a stable Western-world supply chain for critical materials used in defense, electric vehicle, and renewable energy sectors, leveraging Ucore's RapidSX refining technology.
• The parties intend to define the structure and commercial terms for a definitive long-term agreement within nine months.

Key Details

• Parties Involved: Ucore Rare Metals Inc. (Supplier), Vacuumschmelze GmbH & Co. KG (VAC), and eVAC Magnetics LLC (eVAC).
• Agreement Type: Memorandum of Understanding (MOU) to develop a collaborative supply agreement.
• Product Scope: Separated rare earth oxides, specifically neodymium, praseodymium, terbium, dysprosium, samarium, and gadolinium.
• Supply Sources: Ucore’s planned Louisiana strategic metals complex (SMC) in Alexandria, La., and its commercial demonstration facility (CDF) in Kingston, Ont.
• End-Use Applications:
  • NdFeB (neodymium-iron-boron) permanent magnets for automotive, industrial automation, and renewable energy.
  • Samarium-cobalt magnets for defense systems, including advanced radar, sonar, and guidance systems.
• Strategic Context: VAC/eVAC operations are beginning in Sumter County, South Carolina, in fall 2025, supported by a Defense Production Act Title III grant and an $111.9-million qualified advanced energy project tax credit.
• Timeline: The parties will define the structure and commercial terms for a definitive long-term agreement within nine months, with regular progress reviews.
• Ucore Funding Context: In 2025, Ucore received an $18.4-million (U.S.) follow-on award from the U.S. Department of Defense, bringing total funding under its current OT agreement to $22.4-million (U.S.).

Notable Quotes

• Pat Ryan, Chairman and CEO, Ucore Rare Metals: "It's known in critical industries of defense, EV [electric vehicle] automotive and renewable energy that VAC and eVAC represent an extensive supply network with decades of experience for rare earth permanent magnet production and magnetic solutions. As such, we are extremely pleased with our strategic alignment, which will allow Ucore to provide critical rare earth oxides produced using Ucore's RapidSX refining technology for VAC and eVAC's growing global markets. We anticipate that joining forces to provide a complete supply chain solution, in particular for Europe and North America, will support lasting growth for years to come."
• Dr. Erik Eschen, CEO, VAC: "We are thrilled to announce our partnership with Ucore Rare Metals Inc., a Canadian company focused on the development of rare earth element projects and refining technologies. This collaboration strengthens VAC's and eVAC's strategic position in the global rare earth supply chain and ensures long-term access to critical raw materials for our permanent magnet products. Partnering with Ucore reflects our commitment to sustainable innovation and securing supply resilience."