Pensana signs deal with Germany’s Vacuumschmelze to supply rare earths for U.S. magnet production ahead of 2027 China import ban
London-listed Pensana has signed a memorandum of understanding (MoU) with Vacuumschmelze (VAC), a Germany-based global leader in magnetic materials and rare-earth permanent magnets, marking a major step toward building a resilient Western supply chain for critical minerals.
VAC, through its newly commissioned eVAC Magnetics facility in Sumter, South Carolina, is spearheading efforts to boost domestic U.S. production of rare-earth magnets, a sector vital to U.S. national and economic security as Washington seeks to reduce reliance on Chinese imports.
Under the MoU, VAC plans to purchase clean mixed rare earth carbonate (MREC) from Pensana’s Longonjo rare earth project in Angola, ensuring supply security ahead of upcoming U.S. defense restrictions on Chinese rare-earth imports, set to take effect in 2027.
The proposed offtake agreement covers an initial five-year period, with potential extensions and pricing to be determined. The supply will support eVAC’s initial production target of 2,000 tonnes per year of rare-earth magnets, scaling up to 12,000 tonnes per year by 2029.
The MoU also establishes a framework for strategic cooperation between the two companies to strengthen and secure the global rare-earth value chain and explore further joint ventures in advanced materials and manufacturing.
“This partnership between VAC and Pensana is a major step forward in diversifying and fortifying the Western rare-earth supply chain,” said eVAC Executive Chairperson Troy Thacker.
“We are grateful for the strong support from the U.S. International Development Finance Corporation and the Trump Administration in advancing this critical initiative.”
Pensana Chairperson Paul Atherley added that the collaboration aligns with the company’s mission to create a complete mine-to-magnet supply chain for the growing electric vehicle, automation, and robotics industries.
“The Longonjo mine is one of the world’s largest undeveloped rare earth deposits,” Atherley said. “Construction is underway, with production scheduled for early 2027 — though we are working to accelerate that to late 2026.”
Pensana has also launched an expanded exploration program to increase Longonjo’s resource base and ensure sufficient supply to meet the surging global demand for high-performance rare-earth magnets.
