London-listed Pensana has signed a memorandum of understanding (MoU) with Vacuumschmelze (VAC) – a Germany-headquartered manufacturer of advanced magnetic solutions, rare-earth permanent magnets and inductive components.
Through its recently commissioned eVAC Magnetics facility in Sumter, South Carolina, in the US, Pensana says VAC is playing a key role in bolstering domestic rare-earth magnet production in the US, an effort crucial to the US’s national and economic security interests.
The key terms of the MoU include a proposed offtake of products, including the clean mixed rare earth carbonate (MREC), from Pensana’s Longonjo rare earths project, in Angola, to meet the deadline of the defence restrictions on rare-earth imports from China in 2027.
The proposed offtake would be for an initial five-year period, subject to extension and with pricing to be agreed.
The agreement will support the initial production by eVAC of 2 000 t/y of rare-earth magnets, rising to 12 000 t/y by 2029.
The MoU also includes a commitment to strategic cooperation to strengthen and secure the global rare earth value chain and explore additional joint opportunities.
“A new partnership between VAC and Pensana is a leap forward in the fight to strengthen and diversify the Western supply chain for rare-earth minerals and we are grateful for the Trump Administration’s and the US International Development Finance Corporation’s unwavering support and partnership in this effort,” says eVac executive chairperson Troy Thacker.
“This agreement not only reflects VAC’s commitment to building a complete mine-to-magnet supply chain that will meet the growing demands for rare-earth materials but also illustrates how we will do so in a way that bolsters America’s national and economic security,” he adds.
“We are delighted to be able to work with the eVAC team to establish a major mine-to-magnet supply chain in the US. The Longonjo mine is one of the world’s largest undeveloped rare earth mines and Vacuumschmelze is a global leader in rare earth permanent magnets,” comments Pensana chairperson Paul Atherley.
“The Longonjo mine is financed, in construction and scheduled [to start] production in early 2027.
“We are looking at accelerating this production timeline to late 2026 and have committed to a major exploration programme to expand the resource inventory to meet the future demand for electric vehicle, automation and humanoid robots,” Atherley adds.